Professional Documents
Culture Documents
MMS Business Research Methods
MMS Business Research Methods
MASTER IN
MANAGEMENT STUDIES
SEMESTER - II (CBCS)
BUSINESS RESEARCH
METHODS
SUBJECT CODE:UMMSII.4
© UNIVERSITY OF MUMBAI
1. Introduction to Research 01
2. Research Problem and Formulation of Research Hypotheses 36
3. Research Design 76
4. Business Research Methods 89
5. Attitude Measurement and Scaling 103
6. Questionnaire Design 129
7. Sampling and Data Processing 147
8. Univariate and Bivariate Analysis of Data 162
9. Testing of hypotheses, Chi-Square analysis & Analysis of variance
(Anova) 178
10. Research Report 204
PROGRAM : MMS
Semester : II
Title of the Subject / course : Business Research Methods
Course Code :
Credits : 4 Duration in Hrs : 40
Learning Objectives
To understand the importance of research and various methods that researcher used to
1 investigate problems
2 Applying Modern Analytical tools for Business Management Decisions
3 To derive strategies from the research
4 To understand the challenges in collecting the data collection and analysis
5 To interpret the data to make meaningful decisions.
Prerequisites if any
Connections with
Subjects in the current or
Future courses
Module
Sr.
Content Activity Learning outcomes
No.
Meaning of research; Types of research-
Exploratory research, Conclusive research;
Introduction to
1 Lecture The process of research; Research
Research
applications in social and business sciences;
Features of a Good research study.
Defining the Research problem; Management
Decision Problem vs Management Research
Research Problem Problem; Problem identification process;
and Formulation of Components of the research problem;
2 Lecture
Research Formulating the research hypothesis- Types of
Hypotheses Research hypothesis; Writing a research
proposal- Contents of a research proposal and
types of research proposals.
Meaning of Research Designs; Nature and
Classification of Research Designs;
Exploratory Research Designs: Secondary
Resource analysis, Case study Method, Expert
3 Research Design Lecture opinion survey, Focus group discussions;
Descriptive Research Designs: Cross-
sectional studies and Longitudinal studies;
Experimental Designs, Errors affecting
Research Design
Classification of Data; Secondary Data: Uses,
Advantages, Disadvantages, Types and
Primary and
4 Field Work sources; Primary Data Collection:
Secondary Data
Observation method, Focus Group
Discussion, Personal Interview method
Sr.
Content Activity Learning outcomes
No.
Types of Measurement Scales; Attitude;
Attitude Classification of Scales: Single item vs
5 Measurement and Lecture Multiple Item scale, Comparative vs Non-
Scaling Comparative scales, Measurement Error,
Criteria for Good Measurement
Questionnaire method; Types of
Questionnaire Questionnaires; Process of Questionnaire
6 Lecture
Design Designing; Advantages and Disadvantages of
Questionnaire Method
Sampling concepts- Sample vs Census,
Sampling vs Non Sampling error; Sampling
Design- Probability and Non Probability
Sampling design; Determination of Sample
size- Sample size for estimating population
Sampling and Data Case Study and mean, Determination of sample size for
7
Processing SPSS / Excel estimating the population proportion
Data Editing- Field Editing, Centralized in
house editing; Coding- Coding Closed ended
structured Questions, Coding open ended
structured Questions; Classification and
Tabulation of Data.
Descriptive vs Inferential Analysis,
Descriptive Analysis of Univariate data-
Analysis of Nominal scale data with only one
Univariate and possible response, Analysis of Nominal scale
8 Bivariate Analysis SPSS Lab / Excel data with multiple category responses,
of Data Analysis of Ordinal Scaled Questions,
Measures of Central Tendency, Measures of
Dispersion; Descriptive Analysis of Bivariate
data
Concepts in Testing of Hypothesis – Steps in
testing of hypothesis, Test Statistic for testing
hypothesis about population mean; Tests
concerning Means- the case of single
Testing of Analyzing
9 population; Tests for Difference between two
Hypotheses Primary Data
population means; Tests concerning
population proportion- the case of single
population; Tests for difference between two
population proportions.
Chi square test for the Goodness of Fit; Chi
Analyzing square test for the independence of variables;
10 Chi-square Analysis
Primary Data Chi square test for the equality of more than
two population proportions
Lecture and Completely randomized design in a one-way
Analysis of
11 Analyzing ANOVA; Randomized block design in two
Variance
Primary Data way ANOVA; Factorial design
Types of research reports – Brief reports and
Research Report
Detailed reports; Report writing: Structure of
12 Writing and Ethics Lecture
the research report- Preliminary section, Main
in research
report, Interpretations of Results and
Sr.
Content Activity Learning outcomes
No.
Suggested Recommendations; Report writing:
Formulation rules for writing the report:
Guidelines for presenting tabular data,
Guidelines for visual Representations.
Meaning of Research Ethics; Clients Ethical
code; Researchers Ethical code; Ethical Codes
related to respondents; Responsibility of
ethics in research
Presentation /
13 PowerPoint
Report
Text books
1 Business Research Methods – Cooper Schindler
2 Research Methodology Methods & Techniques – C.R.Kothari
3 Statistics for Management – Richard L Levin
Reference books
1 D. K. Bhattacharya: Research Methodology (Excel)
P. C. Tripathy: A text book of Research Methodology in Social Science(Sultan
2 Chand)
3 Saunder: Research Methods for business students (Pearson)
4 Marketing Research –Hair, Bush, Ortinau (2nd edition Tata McGraw Hill)
Business Research Methods – Alan Bryman& Emma Bell – Oxford
5 Publications
6 Business Research Methods – Naval Bajpai – Pearson Publications
Assessment
Internal 40%
Semester end 60%
1
INTRODUCTION TO RESEARCH
Unit Structure
1.0 Objectives
1.1 Introduction
1.2 Meaning and Definition of Research
1.3 Objectives of Research
1.4 Characteristics of Research
1.5 Scope of Research in Business
1.6 Types of Research
1.6.1 On the Basis of Application
1.6.2 On the Basis of Objectives
1.6.3 On the Basis of Extent of Theory
1.6.4 On the Basis of Time Dimension
1.6.5 On the Basis of Enquiry Made
1.6.6 Other Types of Research
1.7 Approaches to Research
1.7.1 Qualitative Approach
1.7.2 Quantitative Approach
1.8 The Process of Research
1.9 Research Applications in Business
1.10 Research Applications in Social Sciences
1.11 Features of a Good Research Study
1.12 Self-Assessment Questions
1.13 Summary
1.14 Key Words
1.15 Answers to Self-Assessment Questions
1
Business Research Methods 1.0 OBJECTIVES
After studying this module, you should be able to:
1.1 INTRODUCTION
In the modern complex world, society today is faced with varied social,
economic & political problems. These problems need systematic,
intelligent and practical solutions. Problem solving is technical process
and requires the accumulation of new knowledge. The quest for
knowledge is a never ending process and in its simplest form this process
has been called as ‘research’. In other words, research is a systematic
effort of gathering analysis & interpretation of problems confronted by
humanity. The world has evolved as a result of consistent efforts to
discover new things. In the current times, research has become an
organized and specialized field. Newer methods to conduct research have
come up. However, whatever be the field in which research is being
carried out, the research methodology parameters remain the same, even if
the objectives and the population to which the problem is being addressed
is different. Certain basic rules, often referred to as standard operating
procedures, are common to all fields, although they can be easily
developed for scientific research and are fuzzy for social science research.
Differences exist between one subject and other, but there is also
interdependence. It has been seen that there are inputs of theoretical
considerations in empirical studies and in a theoretical study; we look for
empirical evidences to support our theory. Understanding research
concepts and the methods used in it is important before any researcher
picks up the initiative of undertaking research. Research is a thinking
process and scientific method of studying a problem and finding solution.
It is an in-depth analysis based on reflective thinking. The current module
provides an insight into the basic research concepts.
5
Business Research Methods 6. Research activities are carefully detailed and clearly outlined through
a research design. These activities are defined by carefully designed
procedures and analysis tools.
10. Every process, term and tool used in the research should be carefully
documented and reported.
11. The research should target towards the discovery of general principles
or theories which can find application to a wide range of problems in
the present and future context.
6
3. Controlling: Research is used as a control technique of Introduction to Research
management to find out the weaknesses and shortcoming of the
management decisions to re-orient the planning and performance
techniques.
7
Business Research Methods 10. Problem-Solving: Starting from problem identification to
formulation of alternative solutions, and evaluating the alternatives in
every area of management, is the problem-solving action of research.
Problem-solving research focuses on the short-range and long-range
decisions that must be taken with respect to the elements of the business
viz. marketing, HRM, production, finance etc. It can help managements
bring about prompt adjustment and innovations in the above areas of
business.
knowing more about the phenomenon without concern for its practical use
and also with developing and testing hypotheses and theories. Pure
research takes place to explore a particular concept, or issue, without
regards for a specific problem, and may be carry out to simply gain a
better understanding of the overall concept. It is said, there is nothing as
practical as a good theory. It is conducted to satisfy any curiosity such as:
8
What makes things happen? Introduction to Research
13
Business Research Methods (iii) Diagnostic Research: It may be said as another name for descriptive
research. This research is conducted to establish whether two or more
variables are associated and their degree of association. In a diagnostic
research, the researcher is trying to evaluate the cause of a specific
problem or phenomenon. This research design is used to understand
more in detail the factors that are creating problems in the company.
Diagnostic research design includes three steps viz. the inception of
the issue, diagnosis of the issue and solution for the issue.
(iv) Case-Study Research: This type of research is concerned with
exploring and analysing the life or functioning of a social or economic
unit, such as a person, a family, a community, an institution, a firm or an.
Industry. The objective of case study method is to examine the factors that
cause the behavioural patterns of a given unit and its relationship with the
environment. A researcher conducting a study using the case study
method attempts to understand the complexity of factors that are operative
within a social or economic unit as an integrated totality.
(iv) Evaluation Research: Evaluation research aims at evaluating
programme that have been implemented or actions that have taken in
order to get an objective. Evaluation means some sort of measurement of
the end-product and impact of an effort in the light of the stated goals for
which the programmed undertaken. There are so many programmes in
which economic gains are not visible, the evaluation of which calls for
special techniques. There are three types of evaluations made in research
namely concurrent evaluation, periodic evaluation, and terminal
evaluation.
(v) Conclusive Research: As the name suggests, conclusive research is
carried out to provide information that is useful in reaching conclusions or
decision-making. The purpose of conclusive research is to provide a
reliable or representative picture of the population through the use of a
valid research instrument. Conclusive research design provides a way to
verify and quantify findings of exploratory studies. Conclusive research
usually involves the application of quantitative methods of data collection
and data analysis. Moreover, conclusive studies tend to be deductive in
nature and research objectives in these types of studies are achieved via
testing hypotheses. Conclusive research can be sub-divided into two major
categories i.e. descriptive or statistical research, and causal research.
1.7APPROACHES TO RESEARCH
Approaches to research consists of making a suitable decision regarding
research components like types of research, measurement and scaling,
development of questionnaire, sample size-determined sampling
techniques and data analysis plan. A research approach can vary
significantly depending on what is to be studied. If it is a scientific
method, it would be appropriate to use similar methods or other scientists
who have attempted the experiment. However, if the research was is in
social sciences, e.g. assessing consumer behaviour, it would be better to
14
carry-out surveys, look into past surveys, etc. The general research Introduction to Research
approach acts as an overall guide for conducting the research work.
There are two major approaches in research literature, i.e., Qualitative
and Quantitative. In a generalized view, we can add logical and
participatory approaches along with aforementioned above.
15
Business Research Methods final report is prepared by the researcher based on the outcomes of the
discussion. For example, in-depth interviews, focus groups, etc.
In indirect qualitative research, the participants are encouraged to come
out with their own versions and understandings about the issue/s being
taken up by the researcher. The respondents are supposed to 'project' their
feelings or attitudes about the situation. For example, word association,
sentence completion, role playing, etc.
There is one more approach other than these two and it is mixed approach
as for any research it is very difficult to apply exclusively only one
approach. Many number of times objectives and effectiveness of research is
more important than the approach and so combination of approaches is the
best way to adopt.
16
Introduction to Research
1.8 THE PROCESS OF RESEARCH
According to Horton and Hunt, the scientific method of research
comprises the following basic steps:
(i) Defining the problem
(ii) Review of literature
(iii) Formulation of hypothesis
(iv) Developing a research design
(v) Collection of data
(vi) Analysis of data
(vii) Drawing conclusions
(viii) Replicate the study for generalisations
These steps give us an idea of the essential steps involved in conducting
research. However, there is no rigid sequence of research process steps.
Depending on each situation, certain steps can be skipped, can he repeated
or circumvented. However, inspire of all these variations, it is possible for
us to develop a sequence of research process. Although each of the steps
discussed here are studied in greater detail in subsequent modules, a brief
overview can be provided at this stage. Figure given below shows the
detailed sequence of research process. Each of these steps is the natural
outcome of the previous steps, but these steps are not mutually exclusive.
It is possible for instance to develop our research objectives and working
hypothesis simultaneously.
The various steps are:
17
Business Research Methods
21
Business Research Methods (iii) Question Structure: This decides the type of questions and their
order. The instrument can be completely direct structured, indirect
unstructured questionnaire or combination of these two approaches.
22
(d) Statistical Analysis: In the last stage, the tabulated data is analysed Introduction to Research
using various statistical techniques like averages, percentages, trend
analysis, correlation and regression techniques etc. Statistical analysis
these days has become highly dependent on computers and softwares e.g.
IBM SPSS Statistics, e-views.
23
Business Research Methods The last section which includes appendices supporting the research
with items like questionnaires and schedules used, glossary of terms
and any other matter which although not a part of the main research
but required in order to support the research can be included.
Thus, this is a brief listing of the steps involved in a research process. A
researcher should keep in mind that these steps are not rigid. Their
sequence can be altered; steps can overlap or jumped depending on the
topic of research.
25
Business Research Methods
28
5. The analysis of data should be sufficiently adequate to reveal its Introduction to Research
significance and the methods of analysis used should be appropriate.
The validity and reliability of the data should be checked carefully.
6. Conclusions should be confined to those justified by the data of the
research and limited to those for which the data provide an adequate
basis.
7. Greater confidence in research is warranted if the researcher is
experienced, has a good reputation in research and is a person of
integrity.
8. Related state-of-the-art literature should be studied in depth to avoid
reinvention of wheel.
9. It should be time-bound and realistic.
In other words, we can state the qualities of a good research as under:
1. Good Research is Systematic: It means that research is structured with
specified steps to be taken in a specified sequence in accordance with the
well-defined set of rules. Systematic characteristic of the research does not
rule out creative thinking but it certainly does reject the use of guessing
and intuition in arriving at conclusions.
2. Good Research is Logical: This implies that research is guided by the
rules of logical reasoning and the logical process of induction and
deduction are of great value in carrying out research. Induction is the
process of reasoning from a part to the whole whereas deduction is the
process of reasoning from some premise to a conclusion which follows
from that very premise. In fact, logical reasoning makes research more
meaningful in the context of decision making.
3. Good Research is Empirical: It implies that research is related
basically to one or more aspects of a real situation and deals with concrete
data that provide a basis for external validity to research results. Validity
and reliability of data should be checked and researchers should consider
an adequate amount of data.
4. Good Research is Replicable: This characteristic allows research
results to be verified by replicating the study and thereby building a sound
basis for decisions.
5. Good Research has Utility: The ultimate objective of any research
program should be oriented towards providing benefit to the society/
business. The research work should either form foundation for further
advancement in the domain, draw some concrete conclusions or it should
be beneficial from the social, commercial, or educational point of view.
6. Good Research is Creative: Creativity is the most important factor in
research proposal. Ideally no two research proposals should be identical to
each other. Research proposal should be designed meticulously so as to
consider all factors relevant to the objective of the project. Difference in
29
Business Research Methods the formulation and structure of two research programs results in
difference in creativity and also in findings. Any sorts of guessing or
imagination should be avoided in arriving at conclusions of a research
program.
e) Explain the steps in research process with the help of flow chart of the
research process.
f) What type of research would you undertake in order find why middle
income groups go to a particular retail store to buy their products?
g) Which type of research would you conduct when the problem is not
clear and all the possible reasons are eliminated? Why?
31
Business Research Methods h) Business research methods are tools for decision making in the hands
of a researcher. Justify the statement.
1.13 SUMMARY
This module presents an introductory discussion about research.
Researchers systematically collect, compile, analyse, and interpret data to
provide quality information based on which the decision maker will be
able to take a decision in an optimum manner. In fact, research is tool in
the hands of a decision maker to make an optimum decision in an
environment of uncertainty. Conducting research to deal with any problem
is a scientific, systematic, and interlinked exercise, which requires sound
experience and knowledge. This module is an attempt to understand the
nature and scope of the research. The purpose of research is to contribute
to or develop a body of knowledge.
Research may broadly be classified on the basis of objectives, extent of
theory, time dimension, enquiry made and others. Basic/ pure research is
generally not related to a specific problem and its findings cannot be
immediately applied. Applied research directly addresses the problem at
hand. Applied research is launched by the firm, agency, or the individual
facing the specific problem. Exploratory research is mainly used to
explore the insight of the general research problem. It is used in obtaining
background information, research problem formulation or defining it more
precisely, identifying and defining key research variables, and developing
hypotheses. Exploratory research is conducted through secondary data
analysis, expert survey, focus group interviews, case analysis, and
projective techniques. Descriptive research is conducted to describe the
business or market characteristics. Cross-sectional research design
involves collection of information from a sample of a population at only
one point of time. Longitudinal study involves survey of the same
population over a period of time. Causal research is conducted to identify
the cause-and-effect relationship between two or more business (or
decision) variables. There are two approaches to research namely;
qualitative approach and quantitative approach.
The ability to take an informed decision is generated through a systematic
study that is conducted through various interrelated stages. A research
design is the detailed blueprint used to guide a research study towards its
objective. A good research is conducted through these steps; discover the
problem area, review of literature, problem formulation and definition,
32
developing a working hypothesis, research proposal, research design, data Introduction to Research
collection, analysis of data, hypothesis testing, data interpretation and
generalisation and reporting of results.
There is wide spectrum of application of research in business and social
sciences. On one side, research is always required by business managers
for solving business problems and decision making. On other side, social
scientists makes use of research in various disciplines of social sciences to
find social phenomenon, link social sciences, analysing social trends etc.
A good research must be systematic, logical, empirical, replicable, useful
and creative.
33
Business Research Methods Ex-Post Facto: Ex post facto research is the process beginning with a
phenomenon and going backward in time to identify casual factors.
34
Introduction to Research
1.15 ANSWERS TO SELF ASSESMENT QUESTIONS
1. (a) empirical (b) social science(c) Quantitative(d) systematic, scientific
(e) basic (f) very obvious(g) ex-post facto (h) formulation hypothesis
(i) researcher (j) Experimental
2. (a) True (b) False (c) False (d) True (e) True (f) False
(g) True (h) False (i) True (j) True
3. A. (iv) B. (i) C. (v) D. (ii) E. (iii)
35
2
RESEARCH PROBLEM AND
FORMULATION OF RESEARCH
HYPOTHESES
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Research Problem: Meaning and Definition
2.3 Importance of Problem Definition
2.4 Sources of Research Problem
2.5 Criteria of Determining a Research Problem
2.5.1 Internal Criteria
2.5.2 External Criteria
2.6 Management Decision Problem vs. Management Research Problem
2.7 Problem Identification Process
2.8 Components of the Research Problem
2.9 Self-Assessment Questions (A)
2.10 Research Hypothesis: Meaning and Definition
2.11 Sources of Hypothesis
2.12 Characteristics of Good Hypothesis
2.13 Formulation of Research Hypothesis
2.13.1 Process of Formulating Research Hypothesis
2.13.2 Generation of Research Hypothesis
2.14 Types of Research Hypothesis
2.15 Research Proposal
2.16 Writing a Research Proposal
2.17 Contents of a Research Proposal
2.18 Types of Research Proposals
36
2.19 Self-Assessment Questions (B) Research Problem and
Formulation of Research
2.20 Summary Hypotheses
2.0 OBJECTIVES
After studying this module, you should be able to:
2.1 INTRODUCTION
Selecting the research problem is the first and important step in executing
the research work. The success of a research effort lies in choosing the
correct problem. This problem setting may not be necessary for
exploratory or formative researches where the research work does not start
with the formulation of the problem and such studies often precede the
setting up of problem. However, in other forms of research it is logical
that the researcher must know what is that he wants to do. It is essential
that a researcher identifies a problem that demands an answer, a need that
requires a solution, a demand that requires satisfaction. The world around
has lots of problem e.g. in the social field the problems of crime, poverty,
housing, in government the problem of bureaucratic delays and
complexities, in business of work culture and technical deficiencies. It is
not difficult to find problem areas, the difficulty lies in choosing a
problem area where specific problem can be clearly delineated and yet the
problem is not a frequently researched one. This module focuses on the
conditions under which decision-making occurs and the managers use to
clearly define business problems and opportunities. Once the researcher
knows what his problem is, he can make a guess or number of guesses.
The guesses he makes are the hypothesis which either solve the problem
or guide him in further investigation. Hypothesis stands somewhat at the
37
Business Research Methods midpoint of research. From this midpoint one can go back to the problem
and also look forward to the date. If the hypothesis is proved, the solution
can be found. If it is not proved, alternative hypotheses need to be
formulated and tested. The researcher proceeds to test on the basis of
facts; already known or that can be made known. The most difficult task
in conducting the research is making the research proposal. A research
proposal is the representation of the research work in a short and precise
manner. Research proposal is made to make it clear what the researcher
intends to do in his research. Research proposal is also necessary to be
submitted for approval of the concerned authorities i.e. the guide or the
client or the funding agency etc. This module would highlight on defining
and formulating a problem, hypothesis and describe how to structure a
research proposal.
39
Business Research Methods theory on which the investigation is to be based. If certain assumptions are
made, they must be explicitly noted.” -Monero and Engelhart
From the above discussion, it can be concluded that problem definition is
a clear and precise statement of the questions that are to be investigated.
Problem definitions may pertain to:
1. Existing business problem that is to be solved by the manager.
2. Situations (currently not creating problem) that have scope for
improvement.
3. Areas where conceptual clarity is needed.
4. Situations in which researcher is trying to answer a research question.
The first two cases relate to applied research while remaining two cases
come under basic research.
40
b. Which appropriate techniques are to be used to generate alternative Research Problem and
Formulation of Research
solutions? Hypotheses
c. What relations, among variables, are to be explored?
d. What kind of study is required?
3. A well-defined problem provides basic for research design.
4. Problem definition facilitates research process.
5. A problem definition indicates a specific managerial decision area that
will be clarified by answering some research questions.
As a matter of fact, formulation of a problem (problem defining) is more
essential than its solution.
41
Business Research Methods technology changes overnight and so do the expectations of the users.
Hence, these developments offer a good source of research opportunities.
Apart from above, some other sources may by intuition of researcher,
consultations with experts, and daily experiences of life and field
situations observed by researcher.
These sources throw open numerous potential possibilities of research.
However not every problem qualifies for research. Hence the selection of
the problem is a very careful and well thought out process.
44
ABC Bank: It has been observed that our market share is declining in India Research Problem and
Formulation of Research
in corporate banking. Hypotheses
Researcher: Only India?
ABC Bank: No, but the majority of our business is there in India and the
decline of share in that territory is causing us the greatest amount of
concern.
Researcher: Do you have any idea regarding the reasons behind losing
market share?
ABC Bank: We wish we knew!
Researcher: What about your competitors? How are they coping?
ABC Bank: We doubt that many other Indian banks are facing same
problem, and the multinational banks are capturing market share.
Researcher: What is the feeling of your consumers regarding the quality
of services you deliver?
ABC Bank: Last year only, we have received the prestigious quality
certification ‘ISO:9000’ from an international agency, which we are proud
of!
Researcher: But how does your service delivery compare with your
competitors?
After such lengthy and sequence of discussions with key persons, analysis
of secondary data and intelligence sources within the bank and from other
sources, the problem was identified as follows:
Management Decision Problem: To improve the relationship experience
with clients at all contact points, in order to arrest the decline in market
share of ABC Bank.
Management Research Problem: To determine the relative strengths and
weaknesses in terms of relationship experiences of ABC Bank, vis-à-vis
other major domestic and international competitors in India. It will be
carried out with respect to factors that influence a corporate’s choice of a
bank to handle its transactions.
However different, the management decision problem need to be closely
linked to the management research problem. A conceptual map (as
diagram given below) is a good way of linking the broad statement of the
decision problem with the research problem.
45
Business Research Methods
46
So that, we can explain (the essential demographic, geographic, Research Problem and
Formulation of Research
psychographic, behavioural and psychological factors that could shape Hypotheses
differentiated in-store consumer experiences for luxury goods and
services).
The above example provides valuable definitions of the management
decision problem and the broad management research problems that are
closely linked. The problem now looks upon a research approach and
research design that will generate understanding and measurements of
different types of affluent class individuals in India. This distinction and
linkage between the management decision problem and the management
research problem helps us in understanding how the marketing research
problem should be defined.
47
Business Research Methods 3. Isolating and identifying the problem not the Symptoms
4. Determining the unit of analysis
5. Determining the relevant variables
6. Stating the research questions and research objectives.
1. Ascertaining Decision-Maker's Objectives-The research investigator
must make an attempt to satisfy the objectives of decision maker who
requested the project. Management theorists suggest the decision maker
should express his or her goals to the researcher in measurable terms.
However, it is unfortunately said that the decision maker seldom
formulates his objective accurately. Consequently, objectives usually have
to be extracted by the researcher. In doing so, the researcher may well be
performing his most useful services to the decision maker. Often
exploratory research can highlight the nature of problem and help the
managers clarify their objectives and decisions.
Iceberg Principle- Why do so many business research problems begin
without clear objectives or inadequate problem definitions? Managers are
logical people, and it seems logical that definition of the problem is the
starting point for any enterprise. Frequently, managers and researchers
cannot discover the actual problem because they lack detailed information.
Here, Iceberg principle serves as a useful analogy. A sailor in the sea
notices only a small part of an iceberg. Only 10 percent of it is above the
surface of the water, and 90 percent is under the water. Similarly, the
dangerous part of many business problems, like the under the sea portion
(submerged) of the iceberg, is neither visible to nor understood by
managers. If the submerged portion of the problem is due to problem
definition, the decisions based on the research may be less than desired.
2. Understanding the Background of the Problem- The iceberg
principle illustrates that understanding the background of a problem is
vital. Often experienced managers know more about a situation, and they
can provide the researchers with considerable background information
about previous events and why those events happened. Institutions, where
decision maker's objectives are clear, the problem may be diagnosed by
exercising managerial judgment. In other situations, where information is
inadequate or managers have trouble identifying the problem, a situation
analysis is the logical first step in defining the problem.
The researcher should develop a conceptual framework of the problem.
The background of the study, underlying theoretical and conceptual basis
should be carefully understood. The researcher should make a critical
examination of the related studies.
3. Isolating and Identifying the Problem not the Symptoms- The
anticipation of all dimensions of a problem is impossible for any
researcher or an executive. For example, a firm may have a problem with
its advertising effectiveness. The possible causes of this problem may be
low awareness, the wrong brand image use of the wrong media, or perhaps
48
low budget allocation. Management's job is to isolate and identify the Research Problem and
Formulation of Research
most likely causes. Sometimes, certain happenings that appear to be ‘the Hypotheses
problem’ may be only symptoms of a deeper problem.
Other problems may be identified only after a research of background
information and after conducting exploratory research. The researcher
should develop a conceptual framework of the problem. The background
of the study, underlying theoretical and conceptual basis should be
carefully understood. How does one ensure that the fundamental problem
has been identified? There is no easy or simple answer to this question.
The researcher should make a critical examination of the related studies.
Executive judgment and creativity must be exercised.
4. Determining the Unit of Analysis- In the next step, the researcher
should state the unit of analysis. It would help him to define the limits of
his study. The researcher must specify whether the level of investigation
will focus on the collection of data about organizations, departments, work
groups, individuals, or objects. The unit of analysis could be an individual,
a social structure like a household or an organization etc. e.g. in studies of
home buying, the husband-wife is one rather than the individual is the unit
of analysis because the purchase decision is jointly made by husband and
wife. It must always be kept in mind that the unit of analysis suits our
purpose of study. In another example, in case of a study on vehicle
ownership, a household can be a unit of analysis.
5. Determining the Relevant Variables- The researcher should now
determine the essential and relevant variables. A Variable is defined as
anything that varies or changes in value. It is something that can be
observed, manipulated and changes in value in response to certain stimuli.
Because a variable represents a quality that can exhibit differences in
value, it may be said that a variable is anything that may assume different
numerical or categorical values. The variable that is to be predicted or
explained called as the dependent variable and the variable that influences
the dependent variable is called as the independent variable. The research
may also need to identify the extraneous variables i.e. those variables that
are not directly a part of the study but may influence the outcome of the
study e.g., a study on relationship between tuitions (independent variable)
and performance (dependent variable) may have IQ as an extraneous
variable. A clear identification of the variables will help in formulating the
correct relationships and controlling the extraneous variables effectively.
Key variables should be identified in the problem definition stage. To
address the specific problem, managers and researchers should be careful
to include all of the relevant variables that must be studied. Similarly,
variables that are superfluous (i.e., not directly relevant to the problem)
should not be included in the study.
6. Stating the Research Questions and Research Objectives- . Now the
researcher must specify the relationship which in his opinion exists
between the variables. Once the problem to be tackled has been finalized,
the variables identified, the relationship stated, the researcher should now
49
Business Research Methods formulate a tentative solution to the problem. Both managers and
researchers expect that problem solving efforts should result in statement
of research question and research objectives. Depending on the purpose of
the study the researcher has to decide which relationship would form a
part of the study and which are to be ignored. A well thought decision will
help the researcher in having a precise set of objectives and the resources
would be optimally utilized on the stated objectives.
7. Developing a Hypothesis: The last stage is of developing a hypothesis.
These proposed solutions are called as hypothesis, which the researcher
would proceed to formulate on the basis of facts known or collected by
him. Whether these relationships are scientifically maintainable or not,
will be decided after the researcher collects and analyses his data. In case
of studies, which are not hypothesis-testing, the researcher may frame a
set of research objectives. After the formulation of the working
hypothesis, the researcher is now ready to prepare the research proposal.
A researcher should take care that the problem chosen is not an excuse for
the personal enlightenment of the researcher i.e. is not being used to
enhance the knowledge of the researcher alone. While identification he
should take care that it is not too narrow or broad in its scope and matches
with his experience, qualifications and resources.
50
consumer. The individual or the organisation, as the case may be, occupies Research Problem and
Formulation of Research
an environment, which is defined by values of the uncontrolled variables. Hypotheses
2. Research-Consumer’s Objective: There must be some objectives to
be attained as the research consumer must have something he wants to get
it. It one wants nothing, one cannot have a problem. There must be at
least two courses of action to be pursued. A course of action is defined by
one or more values of the controlled variables.
3. Alternative Means to Meet the Objective: There must be alternative
means or the courses of action for achieving the desired objective. Means
are courses of action. A course of action may involve the use of various
objects. Objects are the instruments. This means that there must be at least
two means available to a researcher. He has no choice or means, he cannot
have a problem. Of the two possible outcomes of the course of action, of
which one should be preferable to the other. In other words, this means
that there must be at least one outcome that the researcher wants, i.e., an
objective.
4. Doubt in Regard to Selection of Alternatives: The existence of
alternative courses of action is not enough. To experience a problem, the
researcher must have some doubt as to which alternative to select. Without
such a doubt, there can be no problem. This means that research must
answer the question concerning the relative efficiency of the possible
alternative. The courses of action available must provide some chance of
obtaining the objective, but they cannot provide the same chance,
otherwise the choice would not matter. In simple words, we can say that
the choices must have unequal efficiencies for the desired outcomes.
5. There must be one or More Environments: There must be some
environments to which the difficulty or problem pertains. A change in the
environment may produce or remove a problem. A researcher may have
doubts as to which will be the most efficient means in one environment
but may entertain no such doubt in another. Some problems are quite
general. Thus, a research problem is one which requires a researcher to
find out the best solution for the given problem i.e., to find out by which
course of action the objective can be attained optimally in the context of a
given environment.
There are several factors which may result in making the problem
complicated. For instance, the environment may change affecting the
efficiencies of the courses of action or the values of the outcomes; the
number of alternative courses of action may be very large; persons not
involved in making the decision may be affected by it and react to it
favorably or unfavorably, and similar other factors. All such elements (or
at least the important ones) may be thought of in context of a research
problem.
Over and above these conditions, the individuals or the organisations can
be said to have the problem only if they does not know what course of
action is best, i.e. they must be in doubt about the solution. Thus, an
individual or a group of persons can be said to have a problem which can
51
Business Research Methods be technically described as a research problem, if they (individual, group,
the organisation), having one or more desired outcomes, are confronted
with two or more courses of action that have some but not equal efficiency
for the desired objective(s) and are in doubt about which course of action
is best.
52
(d) Write an essay on the various components of research problem? Research Problem and
Formulation of Research
How they help in better definition of research problem? Hypotheses
(e) What are the major criteria for selecting a research problem?
53
Business Research Methods According to Webster's New International Dictionary, “A hypothesis is a
proposition, condition or principle which is assumed, perhaps without
belief, in order to draw out it its logical consequences and by this method
to test its accord with facts which are known or may be defined.”
Comprehensively, we can explain hypothesis as “a proposition or a set of
propositions set forth as explanation for the occurrence of some specified
group of phenomena either asserted merely as a provisional conjecture to
guide some investigation or accepted as highly probable in the light of the
established facts. Quite often a research hypothesis is a predictive
statement, capable of being tested by scientific methods, that relates an
independent variable to some dependent variable.”
5) Another Sources:
I. “Cases which are exceptions to accepter theory” is also the source for
formulating hypothesis.
II. Another source of hypothesis is folk (people in general) wisdom or
current popular beliefs (faith) and practices suggesting both the
problems and the hypothesis. It is also consequences of personal,
idiosyncratic experiences.
III. Hypothesis may also rest on the findings of other studies. Comparative
studies are energetic sources of research.
IV. Theory is indeed and extremely fertile seed bed of hypothesis. It gives
direction to research by stating what is known. Logical deduction from
the theory leads to new problems.
56
Formulation of the hypothesis basically varies with the kind of research Research Problem and
Formulation of Research
conducted. Causal studies tend to study the relationship that exists within Hypotheses
the variable while qualitative studies tend to generalize upon the subject.
Qualitative studies are characterized by:
57
Business Research Methods
Qualitative Methods
It is very frequent in the use of research questions against the objectives.
The questions mainly start with what or how and seek to explore or
describe the experiences. These questions describe to compare groups or
variables. The questions under continual review are revised at the time of
study. Usually, questions are open ended which will not refer any
literature or theory. The qualitative methods include naturalistic inquiry
(e.g. study real-world situations), emergent design flexibility (e.g. avoid
rigid designs) and purposeful sampling (e.g. case studies with
organizations or people). Selected characteristics of qualitative research
methods are as follows:
Quantitative Methods
It is very frequent of getting research questions in the objectives of survey
projects. The use of hypothesis is also more frequent in quantitative
experimental research in variables. The comparison and relationship
between variables are represented in experiments. Theories are useful to
deduce testable propositions. Dependent and independent variables are
separated at the experiments and measured separately. Combinations of
objectives and hypothesis are not considered. Make an alternate forms of
experiments crated to focus to the audience of research. It is analysed
frequent comparison of relationships between variables.
58
Selected characteristics of quantitative research methods are: Research Problem and
Formulation of Research
Hypotheses
This method emphasize on collecting and analysing information in the
form of numbers.
60
(4) Failure to be acquainted with available research techniques resulting Research Problem and
Formulation of Research
in inability to phrase the hypothesis properly. Hypotheses
Simple or Complex
Associative or Causal
2. Alternate Hypothesis: It is the opposite of the null hypothesis, is a
statement expressing a relationship between two variables or indicating
differences between groups. It is denoted by H1 or Ha. It is only reached if
Ha is rejected.
Descriptive Hypotheses: This is simply a statement about the magnitude,
trend or behaviour of a population under study. Based on past records, the
researcher makes some presumptions about the variable under study. For
example, the current advertisement for the soft drink will have a 20–25
per cent recall rate; the literacy rate in the city of Mumbai is 100 per cent.
Relational Hypotheses: These are the typical kind of hypotheses which
state the expected relationship between two variables. While stating the
relation if the researcher makes use of words such as increase, decrease,
less than or more than, the hypothesis is stated to be directional or one-
tailed hypothesis. For example, higher the likeability of the advertisement,
the higher is the recall rate; ban on smoking has an impact on the cigarette
sales. Such hypotheses are of two types viz. Causal or Correlational:
1. Causal or Explanatory Hypotheses: Such hypotheses propose a
cause and effect interaction between two or more variables. The variable
which causes or influences change is called independent, causal or
explanatory variable and the other variable which gets influenced is called
dependent variable. The independent variable is manipulated to cause
effect on the dependent variable. The dependent variable is measured to
examine the effect created by the independent variable. For example,
change in sales turnover is caused or explained by change in advertising
expenses.
2. Correlational Hypotheses: Such hypotheses are used when we want
to test whether there is any correlation between two variables. For
example, return on a stock and return on BSE Sensex/ NIFTY; marks in
entrance examination and final MBA grade.
Universal Hypothesis: Based on statistical significance, if a hypothesis is
used to cover all the phenomena, then it is regarded as a universal
hypothesis. It is one, which denotes that, the stated relationship holds for
all specified variables for all times at all places.The universality of the
hypothesis arises from the fact that it is used to describe a relationship
62
between variables under all circumstances and at all times.For example, Research Problem and
Formulation of Research
sun rises from the east. Hypotheses
Existential Hypothesis: Based on statistical significance, the hypotheses
that are restricted to phenomena that meet particular criteria are regarded
as existential.It is one in which the stated relationship is said to exist for at
least one particular case. It is clearly stated that the supposed relationship
between the variables only exists for a single case or under specific
conditions which may not necessarily be universal.
Question-based Hypothesis: In this hypothesis, the researcher formulates
a question and then endeavours to answer the question by conducting the
research study. The action that follows depends on whether the researcher
accepts the question which is posed as the hypothesis of the research
study.
Working Hypotheses: While planning the study of problem hypotheses
are formed. Initially they may not be very specific. In such cases, they are
referred to as ‘working hypotheses’, which are subject to modification as
the investigation proceeds.
Common Sense Hypotheses: These represent the common sense ideas.
They state the existence of empirical uniformities perceived through day
to day observations. Common sense statements are often a confused
mixture of clichés and moral judgments. Researchers have a large-scale
job in transforming and testing them. This requires three tasks. Firstly, the
removal of value judgment; secondly, the clarification of terms; and
thirdly, the application of validity tests.
Analytical Hypotheses: These are concerned with the relationship of
analytic variables. These hypotheses occur at the highest level of
abstraction. These specify relationship between changes in one property
and changes in another.
To help the researcher to define the contents and to plan and execute
his research project.
Exploratory Interviews
67
Business Research Methods Questionnaire Revision
Field Interviews
Editing
Data Analysis
Report Preparation
It may be helpful to you and your sponsor if you chart your schedule. If
the project is large and complex, a critical path method (CPM) of
scheduling may be used.
13. Special Facilities and Resources-Often, projects will require special
facilities or resources. However, these requirements may vary from study
to study. The proposal must carefully list the relevant facilities and
resources to be used. The costs of such facilities must be recorded on your
budget. E.g. research laboratory, computer and ICT facilities, special
softwares.
14. Project Management- The purpose of the project management is to
do the project efficiently. A master plan is required for complex projects
in order to show how all the phases will be completed. A master plan
includes
Management Procedures
Management Competence
68
Research Problem and
2.18 TYPES OF RESEARCH PROPOSALS Formulation of Research
Hypotheses
The research proposal can be classified in a number of ways. Following
are some of the basis of classifying research proposals:
69
Business Research Methods study is stated as succinctly as possible. A non-solicited proposal has the
advantage of not competing with others.
70
(c) “There is no relationship between higher motivation level and higher Research Problem and
Formulation of Research
efficiency.” is an example of …………… hypothesis Hypotheses
(d) In quantitative studies, an …………….. approach is used for
hypothesis formulation.
(e) ………………….presents a problem, discusses related research
efforts, outlines the data needed for solving the data and shows the
design used to gather and analyze the data.
71
Business Research Methods 4. Answer the following:
(a) There is an advantage in stating the hypothesis both in the null and
in the alternate; it adds clarity to our thinking of what we are
testing. Explain.
(b) What is a research hypothesis? Do all researchers require hypotheses
formulation? Explain
(e) What do you mean by RFP? What are the different bases of
classification of research proposal?
(f) Explain the various contents that would be the part of a research
proposal.
2.20 SUMMARY
Defining the research problem is the most important step in a research
project. Problem definition is a difficult step, because, frequently, decision
makers have not determined the actual problem or only have a vague
notion about it. The researcher’s role is to help decision makers identify
and define their marketing research problem. The formal ways in which
decision makers and researchers communicate their perspectives on a
research problem and how to solve it are through the development of a
research brief and a research proposal. To develop these documents fully,
researchers should be proactive in arranging discussions with key decision
makers, which should include a problem audit whenever possible. They
should also conduct, where necessary, interviews with relevant experts,
and secondary data collection and analyses. These tasks should lead to an
understanding of the environmental context of the problem.
The management decision problem asks what the decision maker needs to
do, whereas the management research problem asks what information is
needed and how it can be obtained effectively and efficiently. The
researcher should avoid defining the management research problem either
too broadly or too narrowly. An appropriate way of defining the
management research problem is to make a broad statement of the
problem and then identify its specific components.
Hypothesis formulation is mostly related to causal research or empirical
research. The term hypothesis has been derived from the ancient Greek,
hypotithenai, meaning to put ‘under’ or ‘to suppose’. A hypothesis is a
“supposition made as a starting point for further investigation from known
facts”. It provides an investigator with a relational statement that is
directly testable in a research study. One of the major purposes for which
a hypothesis is formulated is defining the relationship between the
variables. A hypothesis has four components; the subject group, the
72
treatment, the outcome measure and the control group. Two approaches Research Problem and
Formulation of Research
are used in formulating a hypothesis, the inductive approach or the Hypotheses
deductive approach. Hypothesis is formulated in pairs that are mutually
complimentary of each other. These are called is null and alternate
hypothesis. After the hypothesis has been formulated, the hypothesis
needs to be tested for its truthfulness.
The next stage after developing the hypothesis is to prepare a research
proposal. The proposal is the form of a research design, which is the blue
print for conducting and controlling research. It can also be considered a
research plan or a research projects. A good research proposal serves the
purpose for answering various questions like objective to be achieved,
relevance and importance, methodology to be used, plan and schedule of
completion, scope and limitations and the extent to which the objectives
might be achieved. The contents of a model research proposal includes
title, executive summary, statement of the problem, objective/s of the
research, review of literature, benefits of the study, research design,
analysis of data, forms of results, researcher’s brief, budget, schedule,
special facilities and resources, project management, bibliography and
appendices. The research proposal can be of many types’ viz. internal
proposals, external proposals, solicited proposals, unsolicited proposals,
basic proposals, applied proposals, short-term proposals, long-term
proposals, single investigator proposals and multiple investigator
proposals.
73
Business Research Methods External Proposals: A proposal generated within an organisation and
directed to an outside customer, organisation, or funding agency, is an
external proposal.
74
Research Problem and
2.22 ANSWERS TO SELF ASSESMENT QUESTIONS Formulation of Research
Hypotheses
A. 1. (a) research objectives (b) the problem (c) not involve (d) five
(e) declarative
2. (a) False (b) False (c) True (d) True (e) True
B.1. (a) hypothesis (b) descriptive (c) null (d) inductive
(e) Research Proposal (f) unsolicited (g) Descriptive (h) Internal
proposals
2. a) False (b) False (c) True (d) False (e) True (f) True
(g) True (h) True
3. A (i) B (iv) C (ii) D (v) E (iii)
75
3
RESEARCH DESIGN
Unit Structure
3.0 Objectives
3.1 Meaning of Research Design
3.2 Nature and Classifications of research design
3.3 Exploratory Research Design
3.3.1 Secondary Resource Analysis
3.3.2 Case Study Method
3.3.3 Expert Opinion Survey
3.3.4 Focus Group Discussion
3.4 Descriptive research design
3.4.1 Cross Sectional Studies
3.4.2 Longitudinal Studies
3.5 Experimental Design
3.6 Errors affecting research design
3.7 Conclusion
3.8 Self - Assessment Questions
3.0 OBJECTIVES
1. To understand process of research design as an essential part of
research.
2. To explore classifications of research design and understand
application of each of the type in various research situation.
3. To explore various methods of exploratory research design.
4. To learn cross sectional studies and longitudinal studies as an
important types of descriptive research design.
5. To understand framework and application of experimental research
design.
76
Research Design
3.1 MEANING OF RESEARCH DESIGN
Research design refers to Framework or blue print for conducting research
project. It specifies the details of the procedures necessary for obtaining
the information needed to structure and solving research problem.
Research design is heart and soul of the research project, it outlines how
the research project will be conducted and guides data collection, analysis,
and report preparation. Research design is arrangements of conditions for
collection and analysis of data in a manner that aims to combine relevance
to the research purpose with economy in procedure. Research design is
conceptual structure within which research is conducted. As such the
design includes an outline of what the researcher will do from writing the
hypothesis and its operational implications to final analysis of data e.g.
Course structure of academic program, Building construction plan,
research project.
Let us take the example of course structure of MMS program offered by
IDOL of Mumbai University, here you will find that the course is divided
in four semesters and each semester consist of few subjects, in second
year you will be introduces to subjects of your choice from various
functional specializations such as marketing management, financial
management and human resources management besides others. Then
credits allocated to each of the course such as Managerial economics can
be understood from Course structure, further how many items to be
covered in continues assessments and how many items to be covered in
end semester examinations can be understood with the help of course
structure, simply course structure is an outline for each and every activity
to be carried out in the entire two years of MMS program. Similarly,
research design is a blue print which will guide you in entire research
process about what to do and what to choose. It is a frame work available.
It can also be understood with the help of one more example. Let us
consider that you want to construct a home. Before construction of home
you will visit architect and explain him about your requirements and
budget. The architect will provide you building plan consist of number of
rooms, ventilations, beams, foundations, materials to be used and lot of
similar information along with drawings. This plan presented by building
architect is highly helpful for you throughout your constriction activities,
similarly research design is helpful to you in understanding the
requirements of research projects and various phases with detailing about
the activities.
79
Business Research Methods 3.2.1 Classifications Of research design
83
Business Research Methods Difference between Exploratory research and conclusive research
84
3.4.1.1 Single Cross sectional design Research Design
3.7 CONCLUSION
Research design refers to Framework or blue print for conducting research
project. It specifies the details of the procedures necessary for obtaining
the information needed to structure and solving research problem.
Research design is broadly classified in three classes, exploratory research
design, Descriptive research design and causal research. Exploratory
research design is helpful in proving insight in subject of interest and
develop hypothesis. It can be executed by various methods namely
secondary resource analysis, case study method and expert opinion
86
method and focus group interviews. Descriptive research design can be of Research Design
Cross Sectional Design or longitudinal design. Further cross sectional
design can be classified as single cross sectional design and multiple cross
sectional design. Research in which the independent variable is
manipulated is termed as experimental design. Further principle of
replication, principle of randomization and principle of local control is
used in case of experimental design. Experimental design is further
classified as informal experimental and formal experimental design.
Several potential sources of error can affect a research design. Total errors
can be sampling errors and non sampling errors.
87
Business Research Methods 3. “Provision of insights in to and comprehension of problem situation” is
feature of__
a) Exploratory Research design
b)Descriptive Research design
c) Causal Research design
d)All Of these
4. Group of respondents who experience the same events within the same
time intervals refers to__.
a) Sample
b)Cohort
c) Population
d)None of these
5. All the factors relating to research area are explored in detail and the
study is done in ___type of Experimental research design.
a) Case study Method
b)Focus Group Interview
c) Expert Opinion Survey
d)None of these
88
4
BUSINESS RESEARCH METHODS
Unit Structure
4.0 Objectives
4.1 Primary and Secondary Data
4.2 Classification of Data
4.2.1. Types of Data Classification
4.2.2. Objectives of Data Classification
4.3 Primary Data
4.3.1. Primary Data Sources
4.3.2. Advantages of Primary Data
4.3.3. Disadvantages of Primary Data
4.4. Observation Method
4.4.1. Advantages of Observation Method
4.4.2. Disadvantages of Observation Method
4.5 Focus Group Discussion
4.5.1. Advantages of focus group discussion
4.5.2. Disadvantages of focus group discussion
4.6 Interview Method
4.6.1. Structured Interview
4.6.2. Semi – Structured Interview
4.6.3. Unstructured Interview
4.7 Secondary Data
4.7.1 Uses of Secondary Data
4.7.2. Advantages of Secondary Data
4.7.3. Limitations of Secondary Data
4.7.4. Types of Secondary Data
4.8 Self- Assessment Questions
89
Business Research Methods 4.0 OBJECTIVES
By the end of the chapter, you should be able to
1) Understand and differentiate between primary and secondary data
2) Identify the advantages and disadvantages of primary and secondary
data
3) Classify types of primary and secondary data collection techniques.
4) Distinguish between the various types and sources of secondary data
90
Whether one is in the world of academia, trying to conduct research, or Business Research Methods
part of the corporate sector, thinking of how to promote a new product,
one requires data collection to help make informed and better choices.
Quantitative Methods
Survey is one of the most popular techniques of primary data collection by
using quantitative methods. A survey is a method for collecting
quantitative information about items in a sample population. The
information is collected by using different kinds of interview questions
addressed to a large amount of population. Surveys may have different
approaches like personally administered surveys or a telephonic survey, a
mail survey or an electronic survey. All surveys are basically conducted
using a prefixed format of questions, termed as a questionnaire.
Qualitative Methods
This type of data collection does not necessarily use questionnaires. The
emphasis of such methods is to have a flexible approach while collecting
data. This method is usually used when the research is in the exploratory
stage and due to the lack of enough research conducted on the topic, the
researcher does not have enough knowledge about the research topic. In
such situations, it is extremely difficult for a researcher to design and draft
a questionnaire and follow a systematic approach. In all such situations
that require exploring new insights and perspectives from the respondents,
the qualitative methods of data collection are considered the most
appropriate method.
Qualitative methods of data collection include observations, focus groups
unstructured and semi structured interviews etc.
92
4.3.2. Advantages of Primary Data Business Research Methods
Better accuracy
Primary data is much more accurate because it is directly collected from a
given population.
Information ownership
Information collected by the researcher is their own property and the
researcher reserves the right to share the information.
94
Business Research Methods
4.5 FOCUS GROUP DISCUSSION
This is a type of interviewing technique. A small, selected group of
participants are chosen who are interviewed by a researcher. The
participants are generally from a target research audience whose opinion is
of interest to the said researcher. The discussion is generally a
collaboration of experiences, attitudes, perception, ideas and how they feel
about a certain topic. The researcher generally moderates the discussion in
a direction that will lead to some quality opinions by the participants.
The discussion during this activity is generally free and open, sometimes
allowing the researcher to a new chain of thoughts. The researcher may
also receive varied ideas and insights, enabling him to increase his quality
of research work.
It is however important that the selection of the participants be given due
importance. Smaller groups are generally preferred for a natural and well-
coordinated discussion. The participants are to be selected, as far as
possible, from a similar economic, social and cultural background. This
would minimize any conflict that could arise within the group and
contribute towards achieving the set objectives. The researcher’s skills are
extremely important in keeping the discussion relevant without getting
involved in any controversy or bias. The researcher should have adequate
knowledge of the topic that would be discussed and should be able to
follow and utilize effectively, the opinions provided in the focus group
discussion.
95
Business Research Methods A few individuals could possibly be introverts while others take
control of the debate and impact the end result, or possibly even
introduce bias.
Recording data can present difficulties; it is actually not possible to
record when so many participants are speaking at the same time.
Data analysis could be time consuming and challenging task.
Focus group discussions cannot be repeated. The validity and
dependability of the findings are tough to determine.
96
minimizes the risk of introducing bias via the order or nature of questions Business Research Methods
asked, or via any environmental factors.
Increased credibility, reliability and validity
Structured interviews are thought to be more credible than other types of
interviews because they are very carefully planned and set. All
participants are presented with the same questions in the same order,
which makes it easier to compare the answers. This contributes to
their reliability and validity.
Limited flexibility
Once the questions are selected, they cannot be altered or removed
without affecting the quality of the interview. Even if a question is poorly
worded, excess, or unnecessary, it still has to be presented to all
respondents.
Limited scope
Since most structured interviews are closed-ended, their scope is limited.
Participants cannot go into much detail with their answers, and there is
little room for any kind of explanation. If a participant doesn’t truly
identify with any of the multiple-choice answers, it can be difficult to
know how much their answer reflects their true opinions.
97
Business Research Methods 4.6.3. Unstructured Interview
This type of interview allows the interviewer to get opinions and get a feel
of general attitudes of the respondents. The questions drafted by the
researcher are extremely flexible. There is no pre fixed set of questions.
Since the questioning takes place in a very flexible mode, a researcher is
able to get deeper insight into the subject. This can help the researcher
understand the respondents’ views and opinions better than in structured
questions. Such interviews are generally used in exploratory research and
are usually time consuming. One of the biggest challenge of this method is
that the data generated is in a much unstructured format, this makes it very
difficult for quantitative analysis. The segregation of this type of data is
not only time consuming but also expensive. Coding such kind of raw data
is extensive to allow methodical analysis and needs expertise. However,
there are multiple software available for this purpose in order to cut short
such a tedious task.
98
4.7.1 Uses of Secondary Data Business Research Methods
3. Secondary data does not address the specific needs of the researchers.
For example, if the researcher wants the demographic profile in a
specific category like income, the categories defined by the researcher
may not match with the categories defined in the secondary data.
7. The secondary data might lack quality. The source of the information
may be questionable, especially when you gather the data via the
Internet and other such secondary sources. As the researcher is much
dependent on secondary data as a part of the research process, one
must evaluate the reliability of the information by finding out how the
information was collected and analysed.
One should note that the choice between collecting primary data or using
secondary data depends on the objective, confidentiality or exclusiveness
of the study among other objectives in mind.
100
Examples of secondary data are Business Research Methods
102
5
ATTITUDE MEASUREMENT AND
SCALING
Unit Structure
5.0 Objectives
5.1 Introduction
5.2 Attitude
5.3 Measurement
5.4 Measurement Level/Scales or Classification of Scales
5.5 Single item Vs Multiple Items
5.6 Comparative Vs Non-Comparative Scales
5.7 Measurement Error
5.8 Criteria for good Measurement
5.9 Exercise
5.0 OBJECTIVES:
After studying this unit students should be able to:
1. Introduce the concept of Attitude measurement or scaling and its types.
2. Provide the details of the various scales
3. Identify the difference between single item Vs multiple items and
Comparative Vs Non-Comparative Scales.
4. Learn the Measurement errors.
5. Present the Criteria for Good Measurement.
5.1 INTRODUCTION:
In our day-to-day life, when we have to measure the weight, height, or
some other features of a physical object or we have to judge the person or
his / her qualities, song, or painting then we use some yardstick. Thus, we
measure physical objects as well as abstract concepts. In organizations,
many decisions are taken in each of the functional areas of management:
production, marketing, finance and personnel. Some of the examples of
decisions in the area are - acquisition or disposal of materials,
manufacturing, and marketing of products and services promoting or
demoting the employees, opening new plants, or closing down the existing
ones, and potential buyers or customers for the company’s products or
services, brand awareness, interest in new product purchase. In all the
103
Business Research Methods cases or examples, the businessman or decision-maker needs to learn
something about the attitude of present or potential consumers. Most of
the time in the business the attitude measures can be used to learn which
features of a new product or service concept are acceptable or
unacceptable. The study and measurement of attitudes are important since
it is assumed that there is a relationship between attitude and behavior.
The research, however, indicates that such a relationship holds more at the
aggregate level than at the individual level.
In every research information or data is the lifeline of the research as the
entire project outcome is dependent upon this data. If everything else is in
place but the data are not collected keeping in mind the measurement
aspects, then the entire efforts of the researcher go waste. Hence it is very
important to understand the way different scales are to be constructed to
measure the qualitative data.
5.2 ATTITUDE:
In the business, research scales are generally constructed to measure
behavior, knowledge, and attitude. Attitude may be defined as the degree
of positive or negative affect associated with some psychological object. It
is a pre-disposition of the individuals to evaluate some object or symbol or
aspect of his world favorably or unfavorably.
Attitude comprises three components.
1. A cognitive component - a person's belief or information about the
object.
2. An affective component - a person's feeling about the object such as
"like" or "dislike", `"good" or " bad"
3. A behavioral component - a person's readiness to respond behaviorally
to the object.
The number of definitions of ‘attitude’ that have been proposed, the
following are a few definitions:
1) “Attitude is a mental and neural state of readiness expecting a
directive influence upon individual’s response to all objects and
situations with which it is related”.
104
4) L.L. Bernard: “The behavior which we define attitudinal or attitude is Attitude Measurement and
Scaling
a certain observable ‘set’ organism or relative tendency preparatory to
and indicative of more complete adjustment”.
5.3 MEASUREMENT:
Meaning:
Measurement means assigning numbers or other symbols to certain
characteristics of the objects of interest, according to some pre-specified
rules. Measurement is the actual assignment of a number from 1 to 100 to
each respondent.
The term scaling is applied to the attempts to measure the attitude
objectively. Attitude is a result of several external and internal factors.
Depending upon the attitude to be measured, appropriate scales are
designed. Scaling is a technique used for measuring qualitative responses
of respondents such as those related to their feelings, perception, likes,
dislikes, interests and preferences.
Definitions:
1) George Lundberg: “Measurement is the way of defining things and not
only a process”
2) Kenneth D. Biley: “Measurement is the process of determining the
value or level, either qualitative or quantitative, of a particular attribute
for a particular unit of analysis.”
105
Business Research Methods 3) G.C. Helmstadter: “Measurement is a process of obtaining a numerical
description of the extent to which a person or object possesses some
characteristics.”
4) Blalock: “Measurement is a systematic assignment of numbers to a set
of observations to reflect the status of each member of the set-in terms
of the various properties”.
106
1) Nominal scales: Attitude Measurement and
Scaling
The nominal scale is the simplest method of measurement. This scale is
simply a system of assigning number symbols to events to label them. The
nominal scale classifies individuals, companies, products, brands, or other
entities into two or more categories, Nominal scale is the least powerful
level of measurement. It indicates no order or distance relationship. A
Nominal Scale simply describes differences between things by assigning
them categories.
Gender is an example of a nominal measurement in which a number (e.g.,
1) is used to label one gender, such as males, and a different number (e.g.,
2) is used for the other gender, females. Numbers do not mean that one
gender is better or worse than the other; they simply are used to classify
persons. Any other numbers could be used because they do not represent
an amount or a quality.
The numbers have no arithmetic properties and act only as labels. The
only measure of average which can be used is the mode because this is
simply a set of frequency counts. In addition, in nominal measurement, the
numerical values just “name” the attribute uniquely.
Some examples of variables that can be measured on a nominal scale
include:
Gender: Male, female
Eye color: Blue, green, brown
Hair color: Blonde, black, brown, grey, other
Blood type: O-, O+, A-, A+, B-, B+, AB-, AB+
Place you live: City, suburbs, rural
2) Ordinal scales
Ordinal scales involve the ranking of individuals, attitudes, or items along
the continuum of the characteristic being scaled. It is more powerful than
a nominal scale in that the numbers possess the property of tank order.
The ordinal scale provides a rank order of categories and arranges objects
according to their magnitude in an ordered relationship. For example,
ranking the products of a company according to the satisfaction of
customers, ranking operators in a shop according to their skills, ranking
the products on a shop floor according to their quality, etc.
Transformations that do not change the order of properties are permissible
at this level of measurement. Reacher can perform any statistical
operations that do not change the order of properties that are permissible
at this level of measurement.
107
Business Research Methods Rate your experience while using products:
Product Packaging:
Product Design:
In ordinal scales, numbers represent rank order and indicate the order of
quality or quantity, but they do not provide an amount of quantity or
degree of quality.
Some examples of variables that can be measured on an ordinal scale
include:
Satisfaction: Very unsatisfied, unsatisfied, neutral, satisfied, very
satisfied
Socioeconomic status: Low income, medium income, high income
3) Interval Scale:
The interval scale has all characteristics of the ordinal scale and in
addition, the units of measurement or intervals between successive
positions are equal. The interval scales are also termed Rating scales.
Interval means space between two objects. In the interval scale, numbers
are assigned to objects or events which can be categorized, ordered and
assumed to have an equal distance between scale values. An interval level
of measurement embodies the characteristics of both the nominal and
ordinal scales. This is the first quantitative application of numbers.
The centigrade thermometer and Fahrenheit thermometer are some
examples of an interval scale. In a centigrade thermometer, the minimum
number is 00C and the maximum number is 1000C. between these two
numbers the numbers are placed at equal distances in a Fahrenheit
thermometer, the minimum number is 320F and the maximum number is
2120F.
108
The Interval scale provides a more powerful measurement than the ordinal Attitude Measurement and
Scaling
scales as it incorporates the concept of equality of interval. The statistical
tools range, mean and standard deviation are used in research studies,
especially in collecting attitudinal and overall brand rating information.
Some examples of variables that can be measured on an interval scale
include:
Temperature: Measured in Fahrenheit or Celsius
Income Level (Rs): 0 to 10,000, 10,001 to 20,000, 20,001 to 30,000,
and so on.
Credit Scores: Measured from 300 to 850
SAT Scores: Measured from 400 to 1,600
4) Ratio scales:
The highest level of measurement is a ratio scale. This has the properties
of an interval scale together with a fixed origin or zero point.
Measurement of physical dimensions like height, weight, and age are
examples of ratio levels. The mathematical and statistical operations can
be performed at this level of measurement. A ratio scale has a natural
zero point and further numbers are placed at equally appearing intervals.
The numbers on the scale indicate the actual amounts of the property that
are measured.
A score of 0 means there is a complete absence of height or weight. A
person who is 1.2 meters (4 feet) tall is two-thirds as tall as a 1.8-meter (6-
foot-) tall person. Similarly, a person weighing 45.4 kg (100 pounds) is
two-thirds as heavy as a person who weighs 68 kg (150 pounds).
Some examples of variables that can be measured on a ratio scale include:
Height: Can be measured in centimeters, inches, feet, etc. and cannot
have a value below zero.
Weight: Can be measured in kilograms, pounds, etc. and cannot have
a value below zero.
Length: Can be measured in centimeters, inches, feet, etc. and cannot
have a value below zero.
109
Business Research Methods 5.5 SINGLE ITEM VS MULTIPLE ITEMS
Scaling techniques:
The scaling technique is a method of placing respondents in continuation
of gradual change in the pre-assigned values, symbols, or numbers based
on the features of a particular object as per the defined rules. All the
scaling techniques are based on four pillars, i.e., order, description,
distance and origin.
1) Comparative Scale:
In the comparative scaling, the respondent is asked to compare one object
with another. A comparative scale is an ordinal or rank order scale that
110
can also be referred to as a non-metric scale. Respondents evaluate two or Attitude Measurement and
Scaling
more objects at one time and objects are directly compared with one
another as part of the measuring process. For Example, the researcher can
ask the respondents whether they prefer brand A or Brand B of a
detergent. Or in another example, If the researcher asks the respondent to
express his attitude regarding the reasonableness of the price of one face
cream against that of another brand of face cream it becomes a
comparative scale.
Following are the different types of comparative scaling techniques: a)
paired comparison Scale, b) Rank order Scales, c) Consent Sum Scale and
d) Q sort Scale.
a) Paired comparison Scale: This is the simplest case of a ranking
scale. In this pared Comparison rating scale, the respondent is asked to
rate between the two items at a time. Paired comparison is a widely used
scaling technique wherein a respondent has presented a pair of objects to
which he is supposed to provide his/her preference for the object from a
pair. A paired comparison symbolizes two variables from which the
respondent needs to select one. This technique is mainly used at the time
of product testing, to facilitate the consumers with a comparative analysis
of the two major products in the market.
For Example, a respondent may be asked to indicate his/her preference for
Mobiles in a paired manner.
Carbon * + + +
Apple - * - -
Mi - + * +
Samsung - + - *
Carbon 4
Apple 1
Mi 3
Samsung 2
The above scaling shows that Apple brand Mobile is the most preferred
brand, followed by Samsung, then Mi and the least preferred one is the
Carbon.
c) Constant Sum Scale: In this method, the respondent has to allocate
a given number of points among the items according to some criterion.
The technique involves asking the respondents to assign 10 points to
attributes/features of a Product utility. If the attribute is not much
important then the respondents would want to enter zero. The attributes
are scaled by counting the points assigned to each one by all the
respondents and dividing the number of responses. The constant sum
scaling method allows the discrimination among stimulus objects without
requiring too much time. Normally a hundred- or two-hundred-point
scale is used for this.
For Example, the following are the 10 attributes of a newly launched
model of a Mobile. Please indicate out of 100 points you will assign to
indicate your relative preference of the particular attribute.
112
Attributes points Attitude Measurement and
Scaling
1 Price 8
2 Speed (RAM) 15
3 Storage Capacity 10
5 Battery Backup 12
6 Colour 9
7 Weight 8
8 Warranty 14
9 Service 12
10 Discount 7
2) Non-Comparative Scales:
Non-comparative scaling requires respondents to evaluate only a single
object. Their evaluation is independent of the other object which the
researcher is studying. A non-comparative scale is used to analyze the
performance of an individual product or object on different parameters.
113
Business Research Methods When the opinion of the respondent is sought to be obtained without
reference to a particular product, it becomes a non-comparative scale.
For example, mobile-like Apple companies I phone is reasonability priced
or not. While giving the opinion the respondent is free to compare the
price of, I phone with that of any other mobile. If there is no guideline
about comparative instruction mentioned then the respondent is free to
compare the stimulus with any other stimulus that comes to his mind.
Following are some of its most common types:
a) Continuous Rating Scales and b) itemized Rating Scale
a) Continuous Rating Scales: It is also called a graphic rating scale
and it is used to indicate ratings of a particular attribute. It consists of
points on a continuum (such as a line) and the respondents rate the objects
by placing a mark at the appropriate position on a line. In a graphical
rating scale, the respondents are free to place the object in a position of
their choice. It is done by selecting and marking a point along the vertical
or horizontal line which ranges between two extreme criteria.
For example, a restaurant owner used a continuous rating scale to evaluate
the service quality of a restaurant.
Now a days these sales are widely used in research. Variations among the
itemised rating scales are – i) Likert Scale, ii) Semantic Scale, iii) Staple
Scale.
i) Likert Scale: A Likert scale is termed as summated instrument
scale. This means that the items making up a liker scale are summoned to
produce a total score. Likert Scale was developed by Rensis Likert in
1932. This Scale is most widely used sale in business research particularly
in testing models. In the Likert scale, the researcher provides some
statements and ask the respondents to mark their level of agreement or
disagreement over these statements by selecting any one of the options
from the five given alternatives. A Likert scale measures attitudes and
behaviours using answer choices that range from one extreme to another.
In this scale the respondents are asked to respond to each of the statement
in terms of several degree of agreement or disagreement e.g. 1) Strongly
Agree 2) Agree 3) Undecided 4) Disagree 5) Strongly Disagree. These
five points constitute the scale; where at one end is strong agreement and
at the other end is strong disagreement.
115
Business Research Methods For example, A Mobile manufacturing company adopted the Likert scale
technique for its new mobile range named V Pro. The purpose is to know
the agreement or disagreement of the respondents.
4 3 2
5 1
Attributes Agree Neither Disagree
Strongly Strongly
Agree Nor
Agree Disagree
Disagree
Price range of
mobile is
appropriate
After Sales
Service is Good
Ad Campaign is
effective
Show room
demonstration is
proper
Sales executives
are cooperative
The above illustration will help the company to understand what the
customers think about newly launched mobile. Also, whether there is any
need for improvement or not.
116
Advantages of Likert Scale: Attitude Measurement and
Scaling
1) This Scale method permits the use of items not clearly related to the
attitude being studied.
2) It is relatively easy to construct Likert-type scale in comparison to
other scales.
3) These scales are considered more reliable as these scales measure the
degree of response.
4) The range of responses permitted to a statement in the Likert scale
provides more precise information about the individual’s responses.
5) These sales are highly suitable that are respondent and stimuli
oriented.
ii) Semantic Differential Scale: The semantic differential scale is an
attitude measurement device developed by Charles E. Osgood, G. J. Suci
and P.H. Tennenbnum (1975). This is an attempt to measure the
psychological meaning of an object to an individual. The semantic
differential (SD) scale may be defined as, ‘a collection of subscales in
which absolute ratings of concept are done’. A bi-polar seven-point non-
comparative rating scale is where the respondent can mark on any of the
seven points for each given attribute of the object as per personal choice.
Respondents describe their feelings about the products or brands on the
scales with semantic labels. When bipolar adjectives are used at the end
points of the scales, these are termed as semantic differential scales. Thus,
depicting the respondent’s attitude or perception towards the object. In
this scale the term ‘concept’ refers to the object which is to be rated.
For example, a well-known brand for mobile, carried out semantic
differential scaling to understand the customer’s attitude towards its
product. The pictorial representation of this technique is as follows:
117
Business Research Methods Semantic Differential Scale
From the above diagram, we can analyze that the customer finds the
mobiles of superior quality; however, the brand needs to focus more on
the styling of its watches.
119
Business Research Methods study. Measurement Error (also called Observational Error) is the
difference between a measured quantity and its true value.
Definition:
1) “The measurement error is defined as the difference between the
actual value and the measured value. The true value is the average of
the infinite number of measurements, and the measured value is the
precise value.”
2) “Measurement error is the difference between the observed value of
a Variable and the true, but unobserved, the value of that Variable.”
3) “Measurement error causes the recorded values of Variables to be
different from the true ones.”
1) The Respondent:
Sometimes the respondent may be reluctant to reveal their strong negative
feelings or he may have very little understanding of the situation but he
never admits his ignorance. All this reluctance is likely to result in an
interview of ‘guesses.’ Transient factors like fatigue, boredom, anxiety,
etc. could limit the power of the respondent to report accurately and
absolutely.
120
Attitude Measurement and
Scaling
2) Situation:
Sometimes due to stress and strain, the respondent does not give a proper
response which hurts data collection and affects the correct measurement.
Situational factors may also come in the way of correct measurement. Any
condition which places a strain on the interview can have serious effects
on the interviewer-respondent rapport. For example, if the superior is
present at the time of the interview, he can distort responses by joining in
or merely by being present. If the respondent feels that secrecy about his
opinion or views is not assured, he may be reluctant to express the facts
about the situation and actual feelings.
3) Measurer:
The interviewer or the person collecting data may arise some errors. The
body language of the measurer the voice and the tone may have an impact
on the data collection process. The stereotype appearance and actions of
the respondent may create bias. Errors may also take place, particularly in
the data analysis stage because an incorrect recording of data, incorrect
coding, faulty tabulation and statistical calculations leads to errors.
4) Instrument:
Errors may arise because of the imperfect measuring instrument. The use
of complex words and jargon used may not be understood by the
respondent. Ambiguous meanings, poor priority, inadequate space for
replies, response choice deletions, etc. are many effects that make the
measuring instrument imperfect and may affect the dimension of expected
results.
The researcher must know that the correct dimension depends on
successfully meeting all of the problems listed over. He must try to
exclude errors or else deal with all the possible errors of measurement so
that the final results may not be defiled.
121
Business Research Methods
B. Systematic Errors
A systematic error means that your measurements of the same thing will
vary in predictable ways: every measurement will differ from the true
measurement in the same direction, and even by the same amount in some
cases.
122
Systematic error is also referred to as bias because your data is skewed in Attitude Measurement and
Scaling
standardized ways that hide the true values. This may lead to inaccurate
conclusions.
Systematic error is caused by many factors that consistently affect the
measurement of the variable across the sample.Systematic errors are
errors that have a clear cause and can be eliminated for future
experiments.
The systematic errors are mainly classified into three categories.
a) Instrumental Errors
b) Environmental Errors
c) Observational Errors
2) Environmental Errors:
Environmental errors will happen because of the outside situation of the
measurement instruments. Such kinds of errors primarily occur because of
the effect of temperature, pressure, humidity, dust, vibration, or as a result
of the magnetic or electric field. When the surrounding environment (such as
a lab) causes errors within the experiment. The corrective measures utilized
to eliminate or scale back these undesirable effects are:
a) The arrangement ought to be created to stay the conditions as constant
as attainable.
b) Using the instrumentation that is free from these effects.
c) By using the techniques which eliminate the result of those
disturbances.
d) By applying the computed corrections.
3) Observational Errors:
The observational errors square measure because of wrong observation of the
reading or the fault study of the instrument reading, and therefore the sources of
those errors square measure several. For example, the indicator of a meter
retunes a touch over the surface of the scale. As a result, a fault happens except
the line of the image of the witness is accurately on top of the indicator. To
reduce the parallax error extremely precise meters are offered with reflected
scales. When the scientist inaccurately reads a measuring wrong (such as when
not standing straight-on when reading the quantity of a flask inflicting the
quantity to be incorrectly measured)
124
C. Random Errors: Attitude Measurement and
Scaling
Random errors are the result of unpredictable changes. They are not like
systematic errors; random errors can cause varied results. One moment a
reading can be too high and the next moment the reading is simply too
low. You’ll be able to account for random errors by repeating your
measurements. Taking repeated measurements permits you to use
statistics to calculate the random error.
An error that is caused by unexpected changes within the climatic
condition, such type of error is termed a random error. A random
measurement error stems from fluctuation within the conditions among a
system being measured that has nothing to do with the true signal being
measured. These types of errors remain even after the removal of the
systematic error. Hence such type of error is also known as residual error.
An example of random error is putting the same weight on an electronic
scale many times and getting readings that change in an exceedingly
random fashion from one reading to the next. The variations between
these readings and also the actual weight correspond to the random error
of the scale measurements. Random error (also known as unsystematic
error, system noise, or random variation) has no pattern.
125
Business Research Methods 2) Environmental random error: Environmental errors are caused by
the laboratory environment. An example can be a malfunctioning
instrument. In my freshman chemistry lab, I had a pH meter that may not
stay calibrated. After five minutes, the pH values would fluctuate
erratically when unpredictable changes occur in the environment of the
experiment (such as students repeatedly opening and closing the door
when the pressure is being measured, causing fluctuations in the reading).
5.9 EXERCISE
Long Answer Questions:
1) Define ‘measurement’ in research. What are the different levels of
measurement?
2) What are the various comparative scaling techniques?
3) What are the various non comparative scaling techniques?
4) What are the various sources of measurement of errors?
5) Explain the different sources of error in measurement.
6) Explain the criteria for good measurement.
128
6
QUESTIONNAIRE DESIGN
Unit Structure
6.0 Objectives
6.1 Questionnaire method
6.2 Types of Questionnaires
6.3 Process of Questionnaire Designing
6.4 Advantages and Disadvantages of Questionnaire Method
6.5 Sample Questionnaire
6.6 Self-Assessment Questions
6.0 OBJECTIVES
1. To understand the different methods to design the questionnaire.
2. To understand the step-by-step procedure used to construct the
questionnaire.
3. To learn the usage of various types of questions during
questionnaire design.
4. To study the benefits and drawbacks of different types of
questionnaires.
5. To identify the content of the questions asked during questionnaire
development in order to avoid bias and to get accurate responses.
129
Business Research Methods the questionnaire should be simple to grasp because if the respondent
does not understand the question, he may offer an incorrect response
that will affect the data analysis.
The questionnaire approach is simple to use, and the results can be
statistically analyzed. An adequate number of questions should be
covered in the questionnaire. With this method, different categories of
information can be gathered from a specific group of people. Before we
conduct the main survey, it is advised to conduct a pilot study. This pilot
study is very similar to the actual survey; it is done to understand the
strengths and weaknesses of a questionnaire. Errors might occur during
the questionnaire design, so it is important to conduct a pilot study for a
small group of people so that modifications can be made to the
questionnaire before it is floated to a large group of people. The pilot
study aids in the detection and elimination of errors in the questionnaire.
2. Telephone Questionnaire
3. Paper Questionnaire
The paper-based questionnaire is the most traditional technique, in which
the questions are presented to potential responders on paper. Instead of
having connection to the internet, this method needs the respondent to
have access to a pen or pencil. Paper questionnaire are more expensive
than other forms of questionnaire. The biggest downside using paper
questionnaires is the danger of data loss, which might have a significant
influence on the study. This method of Data collection is more suitable
where the sample size is small.
4. Mail Questionnaire
This approach was widely used in the early years since it was the simplest
form of data collection. The researcher sends the questionnaire to the
potential responder by mail, enclosed in an envelope. Since the
questionnaire is in paper format, the respondent must be qualified to read
and answer the questions. After completing the questionnaire, the
respondent must mail it to the researcher. The respondent does not require
access to technology for this method. This approach has the benefit of
covering a vast geographic region, allowing respondents to reply at their
convenience, and putting less pressure on respondents than a telephone
questionnaire. The downside to this approach is that the responder is
unable to clarify his queries, and the response rate is low.
Type of Questions
a) Open ended questions
An open ended question allows the respondent to reply to the question in
detail rather than just one word. The questions may begin with who, what,
why, when, and so on in order to provoke a long conversation. This type
of question allows the respondent to respond in whatever way they like.
Open-ended questions provide more information, new insights, and the
opportunity to probe. Example:
131
Business Research Methods a) What is the purpose of education?
b)Why are you purchasing this product?
c) What are your thoughts on your workplace's culture?
c) Dichotomous Questions.
A dichotomous question is a question that has just two possible responses,
for example, male or female. When compared to other types of questions,
dichotomous questions take less time to respond to. Another benefit of this
type of question is that it is simple to code, analyse, and interpret.
A dichotomous question allows respondents to make a quick, simple, and
direct response. Example:
There are several online tools for designing and developing questions.
Google Forms is one such well-known tool with several features. A
researcher can make each and every question mandatory to answer,
and the sequence of questions for each respondent can also be
changed. This will assist in avoiding bias while the respondent fills
out the questionnaire. A Google form also allows researchers to make
a questionnaire in sections, and it also has a feature to include images,
upload documents, or capture the email address of the respondent. If
the respondent does not answer a particular question in the
questionnaire, it will create a blank space during data coding. In such
a situation, this blank space can be given a neutral value during
coding. In order to avoid the situation, all the questions can be made
mandatory in the Google form, but care has to be taken to ensure that
each and every question is easy to understand for the respondent.
Designing the questionnaire and data collection through Google
Forms is both cost-effective and time-saving.
Disadvantages
1. The respondent may not be truthful while answering the questions.
2. If the question is not designed properly, the respondent may find it
difficult to interpret it.
3. If the number of questions is excessively high or the questions are
unrelated to the study, the respondent may experience survey fatigue.
4. If the respondent doesn't read the complete question, he may give an
inaccurate answer.
5. The response bias is difficult to detect.
136
6. The responder must be educated in order to complete the questionnaire. Questionnaire Design
7. The questions in this method are structured, and asking the same set of
questions to various respondents may not match their profiles.
8. In comparison to the interview method, a questionnaire cannot
completely capture a respondent's emotional responses.
9. It is impossible to tell whether the respondent really comprehended
the question using this method.
10. This method gives respondents the option to modify their earlier
answer if it conflicts with the subsequent responses.
4. Education Qualification :
10th
12th
Graduation
Post-Graduation
Ph.D.
5. Occupation
I am working.
I have my own Business.
I am Student.
Others
8. Apart from Facebook, what other social networking sites have you
joined?
Instagram
Twitter
LinkedIn
Reddit
138
12. What is it about Facebook that you enjoy? Questionnaire Design
Features of Facebook 1 2 3 4 5
News Feed
1. Name: ____________
3. Location: __________
4. Age: ______________
5. Gender:
Male
Female
Others
6. Occupation
Student
Working
Looking for Job
Own Business
Home maker
Others :___________
7. Monthly Salary
Not applicable
Less than 10,000/-
10,000-20,000/-
20,000-30,000/-
More than 30,000/-
8. How long have you been using a mobile phone?
140
9. Which mobile service provider do you use? Questionnaire Design
Reliance Jio
Airtel
Idea
BSNL
Other (please specify):__________
10. How long have you been using the mobile service provider mentioned
above?
Pre-paid
Post-paid
Other (please specify):__________
12. Rate the following services provided by your mobile service provider.
(Please note: 1- Minimum value and 5- Maximum value)
Services 1 2 3 4 5
Calling
Internet
SMS
International Call
Subscriptions to Apps
Caller tune
Data plans
4G availability
Good Service
Network availability
The Quality of Audio and Video Calls
Other (please specify):__________
141
Business Research Methods 14. Have you ported your number to the current mobile service provider?
Yes
No
15. How satisfied are you with your current mobile service provider?
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
16. Would you recommend switching to your mobile service provider to a
friend, family member, or co-worker?
Very unlikely
Somewhat unlikely
Neither likely nor unlikely
Somewhat likely
Very likely
17. Please specify your mobile network.
2G
3G
4G
Others
18. What do u like the most about your mobile service provider?
Internet Speed
Audio call quality
Affordable price
Network availability in your area
Excellent service
Questionnaire 3
This questionnaire is based on consumer behaviour towards online
shopping. The questions are asked to capture the following variables:
Attitude, Perceived Usefulness, Perceived ease of use, and Buying
Intention.
Question nos. 1 to 8 are demographic questions which are asked to
understand the background of the respondents. Question nos. 9 to 24 are
asked to capture the four variables of the study.
142
Demographic questions Questionnaire Design
1. Name:
2. Email Id:
3. Contact Number:
4. Your age:
Under 19
19-25
26-35
36-50
50+
6. Gender:
Male
Female
Other
143
Business Research Methods 10. I prefer online shopping for purchasing household products.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Perceived Usefulness
13. I believe online shopping doesn’t require a lot of mental effort.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
15. I believe online shopping provides more information about the product.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
144
Perceived ease of Use Questionnaire Design
Buying Intention
21. I would purchase products online.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
145
Business Research Methods 23. I am willing to purchase a product through the internet rather than the
offline mode.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
146
7
SAMPLING AND DATA PROCESSING
Unit Structure
7.0 Objectives
7.1 Introduction
7.2 Sampling Concepts
7.3 Sampling Design
7.4 Sample Size
7.5 Sampling Methods
7.6 Editing and Coding of Data
7.7 Classification and Tabulation of Data
7.8 Summary
7.9Self Assessment Questions
7.0 OBJECTIVES
After analyzing this module, you should be able to:
● Understand the meaning and nature of sampling concepts
● How to design a sample for the research
● Importance of correct sample size
● Understand the significance of sampling methods
● Selection of right sampling method
● Knowledge about editing and coding of data
● Knowledge about classification and tabulation of data
7.1 INTRODUCTION
In most of the research projects, the responses by the respondents
determine the accuracy and relevance of research. Sample helps to collect
the vital information. Today’s world is highly dynamic. Any study is
expected to be completed in a short time to maintain the relevance of
situations and characteristics before it gets changed. The technique
through which a sample is selected is crucial. Sampling helps to collect
relevant information more quickly.
147
Business Research Methods Selection of participants is an important process. The way we select
participants will determine the population. It will determine the population
to which we may generalize the findings of the research. If the job is done
poorly at the sampling stage of the process of research, the integrity and
the relevance of the whole research is at risk.
A sample is a small version of a larger group. The size of the sample plays
an important role in research. Sample is a group of people taken from a
large group for the measurement of the findings of the research. The
following factors are important while determining the size of the sample -
1. Nature of the universe
2. Nature of the study
3. Availability of time
4. Financial availability and options
5. Standard of accuracy and reliability
6. Size of the questionnaire
7. Method of sampling
8. Types of sampling
A sample will not be considered representative due to wrong stratification,
small size, non-random, wrong selection of the population, purposive
selection etc.
01. Sampling
Sampling is a technique through which the predetermined number of
observations are taken from a large population for the purpose of research.
This technique is used in statistical analysis. It is an act of selecting a
representative from the population for determining the features of the
whole population.
A sampling size consists of the various units taken for the research in
numbers from the whole population to conduct research. It is usually
represented by “n”.
06. Estimator
For calculating sample statistics, the estimation process is used. This
process is called the estimator. Different estimators are used for different
sampling.
149
Business Research Methods 03. It must be designed in such a way which results in a small sampling
error.
04. In the context of funds, the sample design must be viable.
05. It must give the results of the sample study.
06. It must result in a truly representative sample.
With the help of sampling design, a large number of units can be studied.
A good sampling design also saves time, energy and money for the
researcher. The sampling design involves some important steps which
starts from defining the target population to executing the sampling
process. A sampling error pops up when the process is not well defined or
executed.
152
Sampling and Data Processing
153
Business Research Methods sampling. It involves the selection of every kth element. The selection is
done from a sampling frame. ‘K’ represents the skip interval.
154
(iv) Snowball Sampling Sampling and Data Processing
156
Sampling and Data Processing
157
Business Research Methods
158
Sampling and Data Processing
7.8 SUMMARY
● Sampling is a technique through which the predetermined number of
observations are taken from a large population for the purpose of
research. This technique is used in statistical analysis. It is an act of
selecting a representative form the population for determining the
features of the whole population.
● The population or universe represents the entire aggregation of items
from which samples can be selected for the research. It represents the
entire group which is the focus of the study.
● Sample design represents a definite plan for obtaining a sample from a
given population. A sample design can be described by sampling
methods and estimators. Sampling methods refers to the procedures by
which some elements of the population are included in the sample for
conducting research. For calculating sample statistics, the estimation
process is used. This process is called the estimator. Different
estimators are used for different sampling.
● Sampling represents the segment of the population that is selected for
the purpose of investigation for research. The process of designing a
sample should be planned and well executed properly.
● A sample size is a part of the total population which is drawn for the
purpose of conducting research. A sampling size consists of the
various units taken for the research in numbers from the whole
population to conduct research. It is usually represented by “n”.
Determination of sample size plays an important role in the sampling
process. There are various methods through which a sample size can
be determined.
● Sampling methods refers to the procedures by which some elements of
the population are included in the sample for conducting research. .
The technique shows the way in which the samples are to be drawn. It
is a very important step of the research process.
● After the process of data collection, the data which is collected needs
to be edited. The data for the research can be obtained through
schedules, interviews, questionnaires, observations or through
secondary sources like books, journals, websites, published data and
reports etc.
● The goal of data editing is to improve the quality of the information.
When the responses are collected through open-ended questions of
questionnaires, unstructured observations and interviews, the editing
of data is required.Coding is the process of mixing the data with a code
label to easily retrieve at a later stage for further comparison.,
interpretation and analysis.
159
Business Research Methods ● Data classification is an act of organizing data by relevant categories
to purposely use it for research analysis. The data is classified on the
basis of characteristics, level of sensitivity and impact of the study.
● Tabulation of data means systematic arrangement of data in rows and
columns. Tabulation is a layout of the data in tabulated form to show
with the help of different rows and columns. Tabulation of data is a
systematic process of showing the data in terms of figures to analyze.
● Data analysis involves the process of organization, summarization and
categorization of data. It is defined as a process of cleaning, modeling
and transforming data to support the decision making and findings
related to research.
160
02. Among these, which sampling is based on equal probability? Sampling and Data Processing
161
8
UNIVARIATE AND BIVARIATE
ANALYSIS OF DATA
Unit Structure
8.0 Objectives
8.1 Introduction
8.2 Descriptive vs Inferential Analysis
8.3 Descriptive Analysis of Univariate data
8.4 Nominal Scale
8.5 Ordinal Scale
8.6 Measures of Central Tendency
8.7 Measures of Dispersion
8.8 Descriptive Analysis of Bivariate data
8.9 Summary
8.10 Self Assessment Questions
8.0 OBJECTIVES
After studying this module, you should be able to:
● Concepts of univariate and bivariate analysis
● Know about the descriptive and inferential analysis
● How to do descriptive analysis of univariate data
● Knowledge about nominal and ordinal scale
● Understand the meaning and application of measures of central
tendency and dispersion
● How to do descriptive analysis of bivariate data
● Difference between univariate and bivariate analysis
8.1 INTRODUCTION
Research is defined as the creation of new knowledge. From problem
statements to conclude the research, each and every step plays an
important role. The most critical and essential pillar of thewhole process is
162
data analysis. Data analysis is the process through which data is collected, Univariate and Bivariate
Analysis of Data
modeled and analyzed data that supports decision making.
Data analysis is an important step of the research process. It is the process
of applying techniques to describe, condense and evaluate data. Data
integrity is an important part of data analysis. It involves the process of
organization, summarization and categorization of data. It is defined as a
process of cleaning, modeling and transforming data to support the
decision making and findings related to research.
164
Univariate and Bivariate
Analysis of Data
165
Business Research Methods ● Frequency distribution table (It tells how often something happened)
166
● Frequency Polygon (can be used to compare sets of data) Univariate and Bivariate
Analysis of Data
167
Business Research Methods Que. 1 What is your occupation?
● Business
● Service
● Professional
● Other
168
An example of ordinal scale is Univariate and Bivariate
Analysis of Data
01. How satisfied are you with our services?
● 1- Totally Satisfied
● 2- Satisfied
● 3- Neutral
● 4- Dissatisfied
● 5- Totally Dissatisfied
How happy are you with the performance of the product?
● 1- Very Unhappy
● 2- Unhappy
● 3- Neutral
● 4- Unhappy
● 5- Very Unhappy
169
Business Research Methods 8.6 MEASURES OF CENTRAL TENDENCY
A measure of central tendency attempts to describe a whole set of data
with a single value that represents the middle or center of its distribution.
It is an attempt to describe a set of data by analyzing and identifying the
central position within the set of data. There are three main measures of
central tendency. Out of these three, Mean or Average is the most familiar
one as compared to median and mode.
These measures explain a different position of the central value in the
distribution. In the distribution, the central tendency aims to provide an
accurate description of the entire data. It also helps to ascertain how to
calculate them and under what conditions they are most convenient and
appropriate to be used.
01. Mean
The mean or average is the most popular measure of central tendency.
Mean can be used with both discrete and continuous data, although its use
is most often with continuous data.. We can simply add all the values in a
data set and divide it by the total number of values to calculate the mean.
The formula of mean This formula is usually written in a slightly different
manner using the Greek capital letter, ∑, pronounced "sigma", which
means "sum of...":
170
Univariate and Bivariate
Analysis of Data
Some other measures of mean used to find the central tendency are as
follows:
● Geometric Mean
● Harmonic Mean
● Weighted Mean
02. Median
Median represents the middle value. It is the middlevalue in distribution
when the values are arranged in ascending or descending order. It divides
the distribution in half. In simple words, we can say that median is the
middle score for a set of data that has been arranged in order of
magnitude. Median when ‘n’ is odd and when ‘n’ is even can be calculated
with the help of this formulas,
03. Mode
Mode represents the most frequent values. It represents the frequently
occurring value in the dataset. Mode represents the most common value.
The most frequent value in the given dataset is considered as mode. It is
the most commonly occurring value in a distribution. Over the median and
the mean, the mode has an advantage as it can be found for both numerical
and categorical (non-numerical) data.
Mode can be calculated as,
172
04. Standard Deviation Univariate and Bivariate
Analysis of Data
Standard deviation measures the differences in the values about the mean.
It measures the variation of the data about the mean. The square root of
the variance gives the standard deviation. In simple words, the square root
of the variance is known as the standard deviation.
173
Business Research Methods 03. Coefficient of Mean Deviation
The Coefficient of Mean Deviation is defined as the ratio of the mean
deviation to the value of the central point from which it is calculated.
174
01. Scatter Plots Univariate and Bivariate
Analysis of Data
Scatter plots give a visual idea of the pattern that the variables follow. The
dots in the scatter plots represent the values for two different numeric
variables.
8.9 SUMMARY
● Data analysis is an important step of the research process. It is the
process of applying techniques to describe, condense and evaluate
data. Data integrity is an important part of data analysis. It involves
the process of organization, summarization and categorization of
data. It is defined as a process of cleaning, modeling and
transforming data to support the decision making and findings
related to research.
● Descriptive analysis is also referred to as one dimensional analysis.
The act of organizing, analyzing and presenting data in a meaningful
way is descriptive analysis. It involves the study of the distribution
of one variable. The analysis may be based on the one variable, two
variable or multi variable.
● Inferential analysis helps to compare, test and predict data. This
analysis allows researchers to begin making inferences as the name
suggests about the hypothesis based on the data collected for the
research. It involves tests of significance for the testing of the
hypothesis.
● Univariate data means your data has only one variable. It is the most
basic form of statistical data analysis technique. The descriptive
analysis of univariate data is used when the data contains only one
variable and it does not deal with the cause and effect relationship.
175
Business Research Methods ● A nominal scale can have both qualitative variables and quantitative
variables. It is a scale of measurement. The scale is used to assign
events or objects into discrete categories. The use of numeric value
or categories ranked by class is not required in this type of scale.
● The ordinal scale shows the relative rank of variables. The non-
numeric attributes like happiness, health, sadness can be measured
with the help of ordinal scale. It helps to identify the rank of
variables. The degree of agreement or disagreement can be analyzed
with the help of this scale.
● A measure of central tendency attempts to describe a whole set of
data with a single value that represents the middle or center of its
distribution. It is an attempt to describe a set of data by analyzing
and identifying the central position within the set of data.
● Measures of dispersion help to describe the variability in data. There
are certain types of measures that are used to quantify the dispersion
of data. Measures of dispersion help to interpret the variability of
data. It helps to understand how homogeneous or heterogeneous the
data is.
● Bivariate analysis means analysis of bivariate or analysis of two
variables used to find out if there is a relationship between two sets
of values. It usually involves the variables X and Y. It is one of the
simplest methods of ascertaining two variables.
177
9
TESTING OF HYPOTHESES, CHI-
SQUARE ANALYSIS & ANALYSIS OF
VARIANCE (ANOVA)
Unit Structure
9.0 Objectives
9.1 Hypothesis Testing:
9.2 Chi-Square Test
9.3 Analysis of Variance (ANOVA)
9.4 Self Assessment Questions
9.0 OBJECTIVES
1. Define null hypothesis, alternative hypothesis, level of significance, test
statistic.
2. Distinguish between a one-tailed and a two-tailed test.
3. Formulate statistical hypothesis for testing.
4. To determine whether the difference between the observed and
expected values is statistically significant using Chi- Square test.
5. To know and apply the one way & two-way ANOVA and interpret the
results.
178
assumption made regarding the distribution of one or more population Testing of hypotheses, Chi-
Square analysis & Analysis
characteristics. of variance (Anova)
Let’s see some statements,
i) One-day cricket matches are not good for cricketers.
ii) There is a vast difference in the performance of players in ODI and
Test matches.
iii) The mobile phone is not good for the health of users.
iv) The life of individual decreases with the use of the mobile phone.
Statements ii) and iv) are statistical hypothesis as they are based on
population characteristic, and statement i) and iii) are simple hypothesis.
9.1.2Null Hypothesis
The null hypothesis is the hypothesis that there is no relation between two
or more variables. The null hypothesis can be disproved, and rejected by
researchers. it is denoted by (H-zero).
a statistical hypothesis in which there is no significant difference between
the set of variables is a null hypothesis.
9.1.3Alternative Hypothesis
A statistical hypothesis, which states that there is a significant difference
between the set of variables, is an alternative hypothesis. A hypothesis
other than the null hypothesis is an alternative. It is denoted by (H-
one). In other words, an alternating hypothesis is a contradictory statement
to the null hypothesis.
Rejection of null hypothesis means that it is false but the decision of
accepting does not mean that it is true and therefore when we set the
hypothesis, we write the statement in the null hypothesis that we want to
reject.
179
Business Research Methods Type II error: When the null hypothesis is false and the researcher fails to
reject it, a type II error occurs. The probability of committing a type II
error is called the power of the test.
180
To carry out the parametric analysis, non-normally distributed data should Testing of hypotheses, Chi-
Square analysis & Analysis
transform into normally distributed data. Logarithmic transformation is the of variance (Anova)
most commonly used method. Sample size and normal distribution of data
are the main factors in hypothesis testing. For small-size data, non-
parametric tests are used. Parametric tests can be used for large-size data,
as large-size data will be more normally distributed and variation will be
less.
(i) against
(ii) against or against
a) S.D. is given
Test statistic is given by
181
Business Research Methods b) S.D. is not given
Test statistic is given by
where
Example:
Ten employees are selected from a firm and their weights are found to be,
in kgs., 50, 52, 52, 53, 55, 56, 57, 58, 58 and 59. At 5% level of
significance, check whether previous average weight i.e. 54 kg is equals
current average weight or not.
Solution:
x x-x\ (x-x\)2
50 -5 25
52 -3 9
52 -3 9
53 -2 4
55 0 0
56 1 1
57 2 4
58 3 9
58 3 9
59 4 16
550 86
182
, Testing of hypotheses, Chi-
Square analysis & Analysis
of variance (Anova)
Test statistic is
(i) against
(ii) against or against
Let us see, different situations and test statistic under each situation:
c) Both samples are independent of each other both population variances
are known.
183
Business Research Methods Test statistic is given by
Example:
In a survey of daily wages of workers, 400 workers are chosen at random
in a company ABC. Their average daily wages are Rs. 250 with standard
deviation of Rs.40. For 400 workers chosen from some other company
XYZ, the average daily wages are Rs.220 with standard deviation of
Rs.55. Are the average daily wages of workers in both companies same?
Test at 5% level of significance.
Solution;
Here we wish to test against , we have to check it
is same or not, hence it is two tailed test.
184
Let, Testing of hypotheses, Chi-
Square analysis & Analysis
of variance (Anova)
average daily wages of workers in both companies are not same
Test statistic is
Now we find critical value at 5% significance level and d.f.= 400 (infinity)
Critical values = -1.96 and 1.96 for two tailed test.
Since, calculated test statistic > Critical value
Therefore, we reject the null hypothesis and conclusion is daily wages of
workers are same in both companies.
Example:
A sample of 500 persons selected at random from a large city gives the
results that 53% males are employed. Is there reason to doubt the
hypothesis that males and females are in equal numbers in employment
sector? Use 1% level of significance.
185
Business Research Methods Solution:
We wish to test, against (right tailed test)
Given that,
Sample proportion = 0.53
Sample size = 500
Example: There are 100 students in a university college and in the whole
university, inclusive of this college, the number of students is 2000. In a
random sample study 20 were found smokers in the college and the
proportion of smokers in the university is 0.05. Is there a significant
difference between the proportion of smokers in the college and
university? Test at 5 per cent level.
Solution:
Let there is no difference between sample proportion and
population proportion)
186
and on the basis of the given information, the test statistic z can be worked Testing of hypotheses, Chi-
Square analysis & Analysis
out as under: of variance (Anova)
187
Business Research Methods The above table shows the number of individuals in respective age groups
who like or dislike products of that food industry.
Test statistics Chi-square is,
Where,
= Observed frequency of the ith row and jth column
= Expected frequency of ith row and jth column
=
We then compare the test statistic to the critical Chi-square value.
Here we set alpha value = 0.05 (i.e. 5%) and the degrees of freedom=
(2-1) (3-1) = 2
188
For d.f. 2 and 5% significance level critical value is 5.991 Testing of hypotheses, Chi-
Square analysis & Analysis
of variance (Anova)
Since >
Therefore, we reject the null hypothesis H_0 at a 5% significance level
and conclude that the Subject and mode of learning are not independent.
Example:
Consider the data for 500 students at college. For each student, we know
the subject and mode of learning, whether online or on campus.
Our variables are the subject and whether online or on-campus learning.
Both variables are categorical.
The last requirement is at least five expected values for each combination
of the two variables. To confirm this, we need to know the total counts for
each subject learned and the total counts for whether online or on-campus
learning.
Here we wish to test,
Mathematics 60 75
Communication Skills 85 95
History 90 30
Information Technology 45 20
Mathematics 60 75 135
Communication 85 95 180
Skills
History 90 30 120
Information 45 20 65
Technology
Here are the actual and expected counts for each subject-mode of learning
combination. In each cell below, the expected count appears in bold below
the actual count. The expected counts are rounded to the nearest whole
number.
Expected frequency of any cell = [((Row total for the row of that
cell)*(Column total for the column of that cell)] / (Grand Total)
Contingency table for subject-mode of learning combination showing
actual count vs. expected count
Mathematics 60 75 135
76 59
History 90 30 120
67 53
Information Technology 45 20 65
36 29
190
The expected counts use the row and column totals. If we look at each of Testing of hypotheses, Chi-
Square analysis & Analysis
the cells, we can see that some expected counts are close to the actual of variance (Anova)
counts but most are not. If there is no relationship between the subject
learned and the mode of learning, the actual and expected counts will be
similar. If there is a relationship, the actual and expected counts will be
different.
Lastly, to get our test statistic,
= 3.29+3.52+5.81+6.21+12.65+13.52+9.68+10.35=65.03
We then compare the test statistic to the critical Chi-square value.
Here we set alpha value = 0.05 (i.e. 5%) and the degrees of freedom= (4-
1)(2-1) = 3
For d.f. 3 and 5% significance level critical value is 7.815.
Since >
Example:
We collect a random sample of five boxes. Each box has 60 pens and four
colors. We hypothesize that the proportions of the four colors in each box
are the same.
191
Business Research Methods We have a simple random sample of 5 boxes of pens. Our categorical
variable is the color of the pen. We have the count of each color in 5 boxes
of pens.
Each bag has 60 pens. Each box has four colors of pens. We expect to
have equal numbers for each color. This means we expect 60 / 4 = 15 pens
of each color from each box.
For 5 boxes in our sample, we expect 5 x 15 = 75 pens of each color. This
is more than the requirement of five expected values in each category.
Expected frequency of any cell =
Red 70 75 5 25 25 / 75 = 0.33
Black 70 75 5 25 25 / 75 = 0.33
Since <
192
Testing of hypotheses, Chi-
9.3 ANALYSIS OF VARIANCE (ANOVA) Square analysis & Analysis
of variance (Anova)
9.3.1 Introduction
ANOVA was developed and practiced by Professor R. A. Fisher later on
professor Snedecor and many others contributed in development of
ANOVA. The difference between different groups of data for
homogeneity is tested by using ANOVA techniques.
“The essence of ANOVA is that the total amount of variation in a set of
data is broken down into two types, that amount which can be attributed to
chance and amount which can be contributed to specified causes.”There
may be variation between samples and also within sample items.
To compare more than two populations, ANOVA plays an important role.
To compare yield of crop from different types of soils, to compare diet
habits of people from different age groups, etc. In such cases, one
generally does not want to consider all possible combinations of two
populations at a time for that would require a large number of tests before
we would be able to arrive at a decision. This testing requires lots of
money and time, even after these tests some relationship between
population or attributes remains unidentified. Through this technique one
can explain whether various varieties soils or age groups etc differ
significantly so that a policy decision could be taken accordingly.
In general ANOVA technique helps to investigate any number of factors
which are hypothesized or said to influence the dependent variable.
Also, the differences amongst various categories within each of these
factors be investigated by this technique.
If we take only one factor and investigate the differences amongst its
various categories having numerous possible values, we are said to use
one-way ANOVA and in case we investigate two factors at the same time,
then we use two-way ANOVA.
The basic principle of ANOVA is to test differences among the means of
the populations examining the amount of variation within each of these
samples, relative to the amount of variation between the samples. The total
variance in the joint sample is partitioned into two parts (a) between
samples variance, and (b) within samples variance. Between samples
variance is due to different treatments, while within samples variance is
due to the random unexplained disturbance.
Test statistic is defined as
: all population means are the same (i.e., effects of all treatments are
the same)
193
Business Research Methods Against
: all population means are not the same (i.e., effects of all treatments
are not the same)
When the effects of all the treatments will be different, between samples
variance will be large. In such cases calculated will be large and hence
we reject null hypothesis. Therefore, ANOVA is right tailed test.
i.e. calculate
SS between =
4) calculate mean square between samples
SS within = for
Also
SS for total variance = SS between + SS within
and d.f. for total variance = d.f. for between + d.f for within
=
194
8) finally, calculate test statistic Testing of hypotheses, Chi-
Square analysis & Analysis
of variance (Anova)
here,
10) conclusion
Now we can decide whether to reject or not reject the null hypothesis.
Total SS =
4) Take the total of different columns and then obtain the square of each
column total and divide such squared values of each column by the
number of items in the concerning column and take the total of the result
thus obtained. Finally, subtract the correction factor from this total to
195
Business Research Methods obtain the sum of squares of deviations for variance between columns or
(SS between columns).
SS between columns =
5) Take the total of different rows and then obtain the square of each row
total and divide such squared values of each row by the number of items in
the corresponding row and take the total of the result thus obtained.
Finally, subtract the correction factor from this total to obtain the sum of
squares of deviations for variance between rows (or SS between rows).
SS between rows =
196
b) : the varieties of second factor have the same effect Testing of hypotheses, Chi-
Square analysis & Analysis
Against of variance (Anova)
: the varieties of second factor are significantly different
The test statistic is
Example:
The following table gives the monthly sales (in thousand rupees) of a
certain firm in three states by its four salesmen:
Salesmen
States Total
A B C D
X 5 4 4 7 20
Y 7 8 5 4 24
Z 9 6 6 7 28
Total 21 18 15 18 72
Solution:
Here no. of rows (r) = 3, no. of columns(c) = 4, total no. of observations
(n) = 12
Sum of all observations = T = 72
Correction factor =
Total SS =
SS between columns =
197
Business Research Methods SS between rows =
Example:
Is the interaction variation significant in case of the following information
concerning mileage based on different brands of gasoline and cars?
Brands of gasoline
Total
W X Y Z
13 12 12 11
A 93
11 10 11 13
cars
12 10 11 9
B 88
13 11 12 10
14 11 13 10
C 93
13 10 14 8
Total 76 64 73 61 274
199
Business Research Methods SS within samples (error)=
201
Business Research Methods 4) The means of the random samples of sizes 9 and 7 are 196.42 and
198.42 respectively. The sums of the squares of the deviations from the
mean are 26.94 and 18.73 respectively. Can the samples be constituted to
have been drawn from the same normal population? Use 5% level of
significance.
Drugs
X Y Z
14 10 11
A
Group 15 9 11
of
people 12 7 10
B
11 8 11
10 11 8
C
11 11 7
10) Set up an analysis of variance table for the following per acre
production data for three varieties of wheat, each grown on 4 plots and
state if the variety differences are significant.
Variety of wheat
A B C
1 6 5 5
2 7 5 4
3 3 3 3
4 8 7 4
203
10
RESEARCH REPORT
Unit Structure
10.0 Objectives
10.1 Introduction
10.2 Types of research reports – Brief reports and Detailed reports
10.3 Report writing
10.4 Report writing: Formulation rules for writing the report
10.5 Guidelines for presenting tabular data
10.6 Guidelines for visual Representations
10.7 Meaning of Research Ethics
10.8 Client’s Ethical code
10.9 Researcher’s Ethical code
10.10 Ethical Codes related to respondents
10.11 Responsibility of ethics in research
10.12 Self-Assessment Questions
10.0 OBJECTIVES
1. To understand purpose of writing a research report.
2. To study different types of research report and rules for writing the
report.
3. Exploring key features of research report.
4. Understanding guidelines to represent data in report.
5. Studying ethical code related to client, researcher and respondents.
10.1 INTRODUCTION
A research report is a well-executed document that outlines the processes,
data, and findings of an investigation in a systematic way. It is a document
that serves as a first-hand account of the research process and study, and it
is usually considered an accurate source of information.
A research report can be considered as a summary of the research process
that clearly highlights findings, recommendations, and other important
204
details. Reading a well-written research report should provide you with all Research Report
the information you need about the core areas of the research process.
Report writing is one of the most important activities of the entire process
of conducting a research study. It is through this report that the researcher
is able to convey in writing the explanations to the following factors.
Technical Report
The technical report is generally intended for other researcher or for
research managers. The report should enable another researcher to be
critic of methodology, check calculations and accuracy and to follow
everything which is done on a step by step basis. A brief definition of all
the technical term should be given.
Brief Reports
Brief reports are to the point reports that are usually suitable for the
presentation of previously published research. Brief reports are similar to
original research as they follow the same format and guidelines, but are
designed for small-scale research or research that is in early stages of
development. These may include preliminary studies that utilize a simple
research design or a small sample size and that have produced limited raw
data and initial findings that may need further investigation.
205
Business Research Methods Detailed Reports
A detailed report is a report where each and every detail is mentioned in
the report in terms of primary analysis, right until the last stages of
analysis and conclusion. It is a very comprehensive report containing all
the possible information related and relevant to the study. The researcher
must it a point to cover all aspects of the study through this kind of report.
206
whatever means and resources available. Some of the means used in Research Report
gathering the information are
6. Writing Recommendation
7. Preparing the report presentation
8. Typing the report
c) Structure of a Report:
The format of a report varies as per the type and purpose of the research
study. However, there are general guidelines in the form of a format that
207
Business Research Methods could be modified in a suitable manner as per the requirements of the
researcher.
Preliminary section
Main Body of the report
Concluding section
Preliminary Section
1. Title Page: The title page covers the title of the project. Along with
other information like name of the researcher, name of the Institute or
organisation that he is associated with. It also mentions any assigned guide
or faculty if applicable.
Introduction
This section contains the reason and intent of the research conducted. The
reasons that led to the conduct of the study.
Literature Review
This part of the body helps to put the research into a background context
and aims to explain its importance. Books and articles which relate
directly to the research topic is mentioned in this section. Previously
published information is also addressed and referenced in the literature
review section.
Methodology
Methodology deals with the methods and principles used in the research.
In the methodology chapter, method/s used for the research and why the
researcher thought they were the appropriate methods, are explained. The
researcher, for example, may depend mostly upon secondary data or might
have collected his own data. He should explain the method of data
collection, materials used, subjects interviewed, or places visited. He must
208
give a detailed account of how and when the research was carried out and Research Report
explain why he used the particular method/s, rather than other methods.
Results
The researcher must record his findings and give a clear presentation of
his results. He must be able to show the essential data and calculations too.
The researcher may use tables, graphs and figures in order to present his
findings in an appropriate manner.
Discussion
The researcher must interpret his results. He must be able to analyse his
data and how do they compare with those of others who have done similar
research in this area. The accuracy of his measurements/results should be
discussed and deficiencies, if any, in the research design should be
mentioned.
Conclusion
The researcher must summarize briefly the main conclusions which were
discussed under “Results.” Was the researcher able to answer some or all
of the questions which were raised in his aims and objectives? The
researcher must not be tempted to draw conclusions which are not backed
up by supporting evidence. He must also make a note of any deviation/s
from expected results and any failure to achieve all that he had intended to
prior to the findings.
Recommendations
The researcher must make his recommendations, if required. The
suggestions for action and further research should be given as found
appropriate by him.
Concluding Section
Reference
The reference contains the names of authors, books, articles etc.
publications, websites’ addresses, used specifically in the report.
Acknowledgements
The researcher must acknowledge the type of guidance or use of resources
in the overall conduct of the study or a specific part like conducting the
survey or use of any technical machines, computers etc. that supported
facilitation in the collection of data. The researcher must also mention any
guidance or assistance received from persons with regards to his research
study.
209
Business Research Methods Appendices
The appendices include the data collected, the detailed analysis and tables/
graphs/ charts etc. the appendices are to be numbered according to the
order in which these are referred in the text
4. The report must be long enough to cover the subject yet brief enough
to hold the reader's interest.
210
Research Report
10.5 GUIDELINES FOR PRESENTING TABULAR DATA
Tables are the most effective way to represent numerical data. With the
help of a table, even complex and extensive data can be easily
comprehended. When numerical data is presented in tabular form, the
reader has quick access to information and is able to compare important
data more easily. For example, if the revenues and sales growth of a
certain firm need to be compared over the course of ten years, tabular data
can help. When displaying data in tabular form, the following guidelines
must be followed-
1. The table must have a title that is both brief and informative.
7. If the data was gathered from a secondary source, the source should be
cited in the footnote.
211
Business Research Methods 10.6 GUIDELINES FOR VISUAL REPRESENTATIONS
Numerical data can be readily converted into visual form using computer
software like SPSS and MS-Excel. With the use of graphics, visual aids
assist in the quick comprehension of data. Visual data representations
include less information than tabular data representations, but they are
easier to read and retain. Line Chart, Pie chart, Bar chart, Column chart,
Pie chart and Scatter chart are the most widely used graphics for
representing visual data.
Line graph
6
4
Unit sold
0
Jan Feb March April
Month
The primary goal of a line chart is to identify a trend or pattern over time.
On the x axis of a line graph, the time unit or independent variable should
be placed. When more than one line is present, the individual lines should
be of distinct type and colour. The maximum number of lines in a line
graph must be five or less. The zero base line should be included in the
line graph
212
Research Report
b) Guidelines for Pie Chart
Sales
4th Qtr
10%
3rd Qtr
5%
2nd Qtr
15%
1st Qtr
70%
A pie chart is used to show a cross section of an area. Each portion or slice
reflects the ratio of that section to the total area. The total of all the data
for a pie chart should equal 100%. The percentage of each area should be
presented within or above the segment, making it easier to read. The pie
chart should be ordered clockwise from largest to smallest slice. The
largest slice should be positioned at 12 o clock. The largest slice must be
coloured light, while the smallest slice must be coloured dark. A pie chart
should have a maximum of 5 slices; if the number surpasses 5, another
type of chart can be used.
c) Guidelines for Bar Chart
Skype
Snapchat
0 1 2 3 4 5
Users (Million)
213
Business Research Methods Data is organised in columns or rows in a bar chart, which allows for
comparison of individual items. When the pattern is both negative and
positive on the same chart, horizontal bars are recommended. Vertical bars
are preferred over horizontal bars when the elements are time-related. The
axis of a bar chart should start at zero to make the data easier to
understand. The distance between each column should be half its width. In
a bar chart, the columns should be ordered in a meaningful sequence, such
as ascending, descending, or chronological order.
216